Worried about Infosys' stability of margins: Saurabh Mukherjea, Ambit Capital

In a chat with ET Now, Saurabh Mukherjea, CEO, Institutional Equities, Ambit Capital, shares his views on the Infosys Q4 numbers. Excerpts:

ET Now: Three things as an analyst you would be mapping from Infosys numbers with a magnifying glass. Apart from looking at the guidance, what else would you be looking at when it comes to the quality of earnings?

Saurabh Mukherjea: The margin is pulling back and that is something we are worried about.

Secondly, one of our concerns with Infosys is that they seem to be playing this game with monotonous regularity. They drive the market down and then they beat the market’s depressed expectations. We hope that that practice comes to a halt with this set of guidance going forward.

Thirdly, in terms of the quality of earnings, in terms of the stability of earnings, what can they tell the market about, and fourthly, will there be any use made of the cash pile? They need to speak to the clients now. Those are the areas one is looking for -- quality of earnings, stability of margins, and use of the cash pile.