New Delhi: Though quarterly earnings are one thing that investors are interested in, Gautam Adani is still sticking to the long-term infrastructure strategy driven by those sectors with the potential to change the Indian economy over the coming decade.
The Adani Group recently disclosed capital spend of ₹1.53 lakh crore, which included spending on digital infrastructure, renewable energy, transmission, utilities, logistics, ports and airports. Its EBITDA also hit a new high for the group, reflecting the magnitude of the business it does.
The strategy is notable for its emphasis on sectors closely related to India’s economic development. The greater the use of electricity, the greater the demand. In an expanding trade, ports assume greater significance. With the increase of air traffic, airports become strategic. Every company bolsters another component of the ecosystem.
The company is also looking to grow in new and emerging technology areas such as AI ready data centres and energy infrastructure, complementing its existing infrastructure businesses.
The return on investments in infrastructure can take years to come, so the term long duration investment theme is used. These assets can, however, produce consistent cash flow for many years once they are in production.
