“We can safely factor in 12-15% topline and bottom line growth for the next three to four years for TCS and Infosys,” says Dipan Mehta, Director, Elixir Equities. It is not just Maharashtra, other states are also reporting a spike now. If they too were to go into lockdown, would markets may see further damage?We are back in uncertain territory and the blue sky scenario is no longer there as far as markets are concerned. We do not know which states will take what action and what impact that will have on the economic activity but we are in for a few rough months where economic activity will get impacted. More than that, consumer sentiment and investor sentiment will take a hit on this account. As a long-term investor, you have to ride out this period of uncertainty and look for better times once this settles down once the lockdown starts to make impact and the cases start to come off. Then the confidence to reopen the economy will come back. One thing is clearly understood that these are temporary phenomena and do not have multi-quarter, multi-year impact on consumer spending or economic activity or capex cycle for that matter. Both Infosys and TCS numbers are out. Infy reported a muted set and the ADR was down almost 6% overnight. TCS also saw a very bleak reaction to its earnings on Tuesday. What do you make of the near term growth in IT big boys?Both Infosys and TCS entered their earnings on a strong note and there were certain chinks in what they have reported. There was minor disappointment that they did not beat the consensus estimates by huge margins. Infosys was below consensus estimates but these are complex businesses and one could have a soft quarter once in a while. But the long-term prospects do not diminish on account of that. We are seeing very strong deal wins coming in for both TCS as well as Infosys. That offers multi-year visibility of earnings and with the kind of guidance which the management has given, we can safely factor in 12-15% topline and bottom line growth for the next three to four years for TCS and Infosys. That brings secularity into earnings and also gives comfort to investors to give a higher PE multiple for such businesses. As long-term investors, one should focus on that. I do feel that these companies are at a stage where PE multiples do not extend. They should expand because of certainty of earnings and we could still see them delivering 15-17% compounded return over the next three-four years. These companies remain a safe haven if the corona situation deteriorates in India or globally. I would not be too negative on technology and corrections like this are a good opportunity for investors who are underweight software to at least get to be equal weight if not overweight.