Infosys announces wages hikes; focus clearly on growth - Kotak

Infosys announced 8% offshore wage hikes for all staff and a selective 3% onsite hike. The global sales force will receive a hike of 8%. The quantum of wage increase, especially for global sales is a bit of a disappointment. FY2014E EPS growth is likely to be weak, despite Rupee tailwinds. The view on the stock has to be a function of whether one believes corrective action by NRN will yield gains from FY2015.

We believe it will and hence see Infosys as a stock to hold within our cautious coverage view on the sector.

Source : Equity Bulls

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