Shares of L&T Infotech on Wednesday surge 7 percent to an intraday high of Rs 1,799 after the company posted a 13 percent increase in net profit to Rs 427.5 crore for the March-ended quarter from the period a year ago. Its revenue was up 21.2 percent at Rs 3,011.9 crore for the quarter.
For the full financial year 2019-20, the company registered a revenue growth of Rs 10,878.6 crore, up 15.2 percent from the previous year and a net profit rise of 0.3 percent to Rs 1,520.5 crore.
L&T Infotech's board also recommended a final dividend of Rs 15.5 per share.
The company won two large deals during the March quarter, culminating in a record eight large deal wins in the financial year 2019-20.
"With strong order wins, healthy revenue momentum and client-centric growth strategy, the company shall confront near term demand challenges and emerge stronger," the company said.
While the company does not have a presence in travel or hospitality and a negligible presence in retail, the impact of the COVID-19 pandemic in its energy and utilities vertical, which accounts for about 11 percent of overall revenue will be felt.
Pressure in banking and insurance segments is also expected by the company in the coming months. Insurance saw a 1.3 percent decline in revenue sequentially for Q4. BFSI accounts make for about more than 40 percent of its overall revenue.