Good service-delivery capability. Strong EBITDA margins. Largely India-based operations, which exposes the company to protectionist policies abroad. Robust and stable cash flows. Conservative financial policies with zero external debt. Large unhedged exposure to foreign exchange fluctuations. The stable outlook on Infosys Ltd. reflects our expectation that the company will maintain its competitive position, generate healthy cash flows, and have zero external debt over the next 12-18 months. We also expect Infosys to maintain a conservative policy toward acquisitions and dividends. We may upgrade Infosys if the company improves: (1) its scale of operations, aided by the stability and success of new management and strategy; and (2) its operating efficiency through better employee management to sustain EBITDA margins in excess of
