HCL Technologies, Tech Mahindra may withstand coronavirus impact

Impact likely to be higher for Infosys and TCS who have higher dependency on discretionary spend, say experts

IT services firms such as HCL Technologies and Tech Mahindra are said to be better placed than their bigger peers Infosys and Tata Consultancy Services (TCS) to withstand the impact of the coronavirus outbreak.

According to analysts, while discretionary spend by global enterprises is likely to negatively impact all Indian IT firms, more revenues from products and less exposure to financial services segment are likely to lessen the impact for HCL Technologies and Tech Mahindra.

“HCL Technologies and Tech Mahindra are more defensive large-cap stories to play amidst the coronavirus outbreak, given higher annuity through IMS (infrastructure management services) and product revenues