ICICI Securities also noted that Infosys is likely to report margin improvement in all the remaining three quarters owing to less visa costs and better calendar.
It, however, said the impact of wage hike on the margin would be higher than 60 basis points in the current quarter. Infosys’s margin stood at 20.5 per cent in the June quarter and guided for 21–23 per cent margin for the fiscal.
On attrition, the report noted that it has peaked in the first quarter and is likely to come down in the coming quarters.
“Infosys has applied for meaningfully higher visas in FY20, availability of which should help create higher opportunities for onsite deployment of associates, which should help lower attrition in FY21,” it said.
In the June quarter, the company’s overall attrition stood at 23.4 per cent, a 300 basis points rise over the preceding quarter.
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