Mumbai: Shares of Infosys are likely to fall after the company management said that the operating margins were likely to be at the lower end of the guided range of 22-24% for the March quarter.
The company cited increased costs due to wages and retention bonuses as well as extended investments in localisation among other costs as the probable reasons that may weigh on the Jan-Mar margins.
The comments by the management were made at the Chasing Growth conference by Kotak Institutional Equities.
The information technology major reported a sequential fall of 110 basis points in operating margins for the quarter ended December, at 22.6%.
On Tuesday, shares of Infosys ended 2.3% lower at 724.30 rupees.