Shares of 3i Infotech jumped more than 5% on the morning trade of April 18 after the Indian Oil Corporation (IOCL) renewed its contract with the IT firm for FY24. The contract worth Rs 16.29 crore is to manage IOCL’s data centre services for three years.

At 11:40 am, 3i Infotech was quoted at Rs 33.30 on the NSE, up 6% from its previous close, snapping a six-session losing streak of more than 12%.

“We are delighted that Indian Oil Corporation Limited continues seeing value in this partnership. This multi-year transaction is an important milestone for 3i Infotech as we look to expand our portfolio of government and public sector businesses,” said Managing Director of 3i Infotech and Global CEO Thompson P Gnanam said.

The stock has fallen more than 70% since relisting in October 2021, mainly due to shaky financial performance. Its operating margin has ranged between -12% and 7% over the past six quarters, according to Screener.in.

Its consolidated net sales stood at Rs 182.30 crore in Q3FY23, up 10.02% YoY. Quarterly net profit was Rs 13.06 crore compared to a loss of Rs 23 crore in Q3FY22.

The company plans to achieve $1 billion in organic revenue growth by 2030 by leveraging technologies such as 5G in edge computing, cognitive AI/machine learning, data science, analytics, and blockchain.