Stating that the company's margins have remained largely constant, Infosys CFO Rajiv Bansal said, "If you look at 250 basis points gain in margin, that we have seen because of rupee depreciation more or less offset the impact of wage hike that we have articulated."

The company had earlier said that wage hikes announced in June would have an impact of about 300 basis points on its margins in the July-September quarter.

Infosys said it has been under investigation in the US, which accounts for a major chunk of its revenue, over the past use of temporary employment visas.

"We are engaged in discussions with the Attorney's office and other government departments regarding a civil resolution of the government's investigation into its compliance with Form I-9 requirements and past use of B-1 visas," Shibulal said.

"Based on the status of this discussion, we have set aside a reserve of $35 million. This also includes legal costs. Because the discussions are ongoing with the government, we cannot provide any additional details at this point in time," he added.

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