Here are the top five takeaways from the Infosys earnings that were posted earlier in the day

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March Quarter: Revenues were a tad lower than expectations with a constant currency (exchange rates that eliminate the effects of exchange rate fluctuations when calculating financial numbers) growth of 0.6% compared with 1%. Dollar revenue grew at 1.8% compared with estimates of 2%. This was offset by a margin spike, with EBIT margins expanding 40 basis points to 24.7%, contrary to expectations of flat margins.

One basis point is a hundredth of a percentage point.

FY19 Guidance: Constant currency revenue guidance at 6-8% implies that the company even at the lower end will better the 5.8% growth delivered in FY18. The disappointment in the guidance is that the margin outlook has been lowered for the second straight year, now at 22-24% compared with 23–25% in FY18 and 24-26% in FY17.

The cut in margin guidance was necessitated by investments in digital offerings and increased localisation. With revenue projections coming in line with consensus and margin cut catching the street by surprise analysts could push for a cut in earnings per share. While the emphasis on digital offerings is a positive, the street will want comfort that the margin cut is sufficient for the company to play catch up on these offerings.

Mixed Q4 Internals: The performance of core verticals such as Banking, Financial services and Insurance, or BFSI, (up 0.1%) and retail (down 0.7%) and core markets such as North America (up 0.1% ) and Europe (down 0.2%) was muted. The rest of the world grew 6.3% in constant currency terms, driving growth. Deal victories were at a six- quarter high at $904 million with an increase in the $75 million, $50 million and $25 million accounts.

Capital Allocation Sweetener: The company maintains that it will return up to 70% of free cash flows to shareholders. It will also look to return $2 billion via a special dividend, and other means. Considering that just last year Infosys had launched a $2 billion buyback, this is good news.

M&A Mashup: On the one hand, Infosys acquired US-based digital creative and consumer insights agency WongDoody Holding Company for $75 million, its first acquisition under CEO Salil Parekh’s watch. On the other, it is looking to sell two acquisitions – Skava and Panaya – made under Parekh’s predecessor Vishal Sikka. The company recently committed to its platforms strategy and this move could dent investor confidence if it were to launch products and platforms in the future. It also raises questions on what happens to the clients using these platforms. That said, it could be a move to erase the Sikka legacy.