25 February 2019 Even as INFOs revenue growth improves its FY19 EBIT margin exit at ~22- 22.5% followed by wage hikes in 1QFY20, pose a risk to consensus EBIT estimate of 23.4% for FY20. This is a key concern weighing on the stocks attractiveness. INFOs recent revival under Mr. Salil Parekh in revenue growth (from 4.6% constant currency (CC) in 2QFY18 to 10.1% CC in 3QFY19) came with an EBIT margin decline of 120bp, despite the INR/USD depreciating 11% during the same period. The trend is remarkably similar to the period under Dr. Vishal Sikka, when INFOs revenues increased from 6.3% CC in 2QFY15 to 15% YoY CC in 4QFY16 and 12% in 1QFY17. EBIT margin during this period shrank 200bp and currency had depreciated by 11%. In both instances, however, we see revenue growth gaining priority over margins. In the earlier period, INFO saw its stock price gain 33%, while in the recent period, the uptick in the stock price was a robust 59%.