“Margins for the quarter were impacted due to increases in salary and visa costs which to some extent were offset by rupee depreciation,” CFO V Balakrishnan said. The impact of the depreciating rupee on the company's margins was 2.5 per cent, he said.

Projecting continued volatility in the currency market over the short term the Infosys CFO expressed confidence that the chances of the rupee appreciating against the dollar were also slim in the short term given the existing global cues. The company said it hedged $ 811 million over the next quarter to account for currency volatility.

While there have been “sporadic requests” for changes in existing contracts “the pricing environment continued to remain stable,” chief operating officer S D Shibulal said.