L&T Infotech surges 7% after posting 13% jump in March quarter net profit

The company won two large deals in Q4 with net-new TCV in excess of $100 million, culminating in a record eight large deal wins for in FY20

Shares of Larsen & Toubro (L&T) Infotech rallied 7 per cent to Rs 1,786 on the BSE on Wednesday after the company posted revenue growth of 4.7 per cent in constant currency (CC) terms on sequential basis in March quarter results. In rupee terms, the firm's revenue during the quarter under review grew up 7.1 per cent quarter on quarter (QoQ) at Rs 3,012 crore while consolidated net profit rose 13 per cent year-on-year to Rs 427.5 crore.

The global technology consulting and digital solutions company reported 10.3 per cent jump in profit before tax (PBT) at Rs 551 crore over the previous quarter. Net income rose 13.5 per cent at Rs 428 crore on QoQ basis.

The company's board also recommended a final dividend of Rs 15.50 per equity share of face value of Re 1 each.

The company won two large deals in Q4 with net-new TCV in excess of $100 million, culminating in a record eight large deal wins in FY20.

The management said its resilient business model, comprehensive digital transformation capabilities and flawless execution helped the company deliver fourth consecutive year of industry leading double-digit revenue growth in FY20. "With strong order wins, healthy revenue momentum and client centric growth strategy, the company shall confront near term demand challenges and emerge stronger, "it said.

“In a quarter where core geographies were impacted for almost a month, L&T Infotech delivered robust results. Reported growth (4.7 per cent QoQ, CC) was stronger than our expectations (3 per cent QoQ, CC). More importantly, quality of growth was extremely strong with most of the key verticals and geographies delivering healthy growth,” Motilal Oswal Securities said in result update.

The brokerage firm believes that L&T Infotech would be one of the key beneficiaries of the acceleration in digital adoption driven by COVID-19 over the medium term.