FILE PHOTO: Employees of Indian Software giant Infosys Technologies Limited walk in the campus of the company's headquarters in Bengaluru(Photo Credit: MANJUNATH KIRAN/AFP/Getty Images).

SHARES of India’s Infosys Ltd on Thursday (16) soared 15 per cent to a fresh record high, a day after large deal wins and tighter costs helped the country’s second largest IT firm post better-than-expected profit and reinstate its full-year outlook.

The Bengaluru-based software services provider reported a 11.5 per cent jump in profit in a quarter that was expected to be disruptive for India’s nearly $200 billion IT industry as the coronavirus outbreak crimped client spending.

Infosys shares were on track for their best day in more than seven years on Thursday, and lifted the benchmark Mumbai index 0.5 per cent.

“Infosys displayed class-leading performance with strong offense on revenue recovery and large deal signings, and solid defense on margin expansion and cash conversion,” JP Morgan said in a research note.

JPM raised Infosys’ target price to Rs 1,000 from Rs 900, and reiterated an ‘overweight’ rating.

Improved demand visibility from deal signings and resumption of client decision making helped Infosys issue a “surprisingly strong annual guidance”, JPM added.

The firm expects revenue to be flat or grow 2 per cent on a constant currency basis and operating margins of 21-23 per cent for 2020-21. This compares with a revenue growth of 9 per cent or more in the last two years on a constant currency basis.

The company had not provided any projections in the March quarter, citing Covid-19-related uncertainty.

Larger rival Tata Consultancy Services missed June-quarter profit estimates, while Wipro Ltd reported stronger-than-expected earnings but withheld providing outlook.

Infosys was “reasonably optimistic” about the financial services sector, but expects continued weakness in the capital markets, cards and payments industry, Chief Operating Officer UB Pravin Rao said.

Chief Financial Officer Nilanjan Roy said the company kept a tight lid on costs related to travel, marketing, hiring and discretionary expenses.

Net profit climbed to $562.45 million. Infosys signed $1.74 billion worth of large deals in the three months to June 30. That was higher than the $1.65 billion in the preceding quarter, but lower than a year earlier.