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In a first, India’s three big software companies reported their quarterly results on the same day: Wednesday. What stood out, though, was the bright performance of the top two. Tata Consultancy Services reported better-than-expected revenues for the three months ended 31 December. It also announced a share-buyback at a price that reflected a 17%-odd premium over its last close. Infosys beat analysts’ estimates of both its top and bottom lines, and raised its revenue outlook. Wipro’s profits, though, were about flat.

Broadly, their momentum of snagging new information technology (IT) deals seems intact. The pandemic altered the way modern businesses operate, driving them to upgrade and redo IT systems in accordance with the demands of increased digital dependence. This has resulted in a flurry of fresh orders for Indian software majors. In addition, this export sector stands to benefit once the US raises policy interest rates, which would bolster the dollar and lift export earnings. High attrition remains a worry, though. Beyond IT, earnings in several other sectors could be buoyant. There will be laggards too. Still, a positive kick-off to the season is heartening.

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