How is JPMorgan reading Q3 nos of tech majors?

IT companies, so far, have posted significant revenue growth for the third quarter of fiscal year 2011. While HCL Technologies' revenues surged 7.5%, TCS reported a growth of 6.98% with Infosys and Wipro laagering behind with 5.9% and 4.18% growth in revenues, respectively.

Not surprised with Wipro's dismal performance in the said quarter, Viju George of JPMorgan said the company has bee lagging for the last six-seven quarters and the trend may continue going forward. "It needs to shift its topline growth trajectory," he told CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee in an exclusive interview.

Below is the verbatim transcript of his interview. Also watch the accompanying videos.

Q: How much have you upped prices and earnings targets by on TCS?

A: On TCS, we have upped the price target by about 14%, from Rs 1,150 to Rs 1,300. The earnings have been upped about 3-4% for FY12 and FY13.

Q: What have you made of Wipro's numbers and the management changes? In what light will you see this stock? How do you think institutional investors will read this stock now?

A: You need patience with Wipro. For six-seven quarters, Wipro has lagged relative to peers. It is not much of a margin issue, it's more of a topline issue. Wipro needed to shift its topline growth trajectory sustainably higher than what it was managing right now. In that sense, change was of key essence, but that said, investors will have to be patient. The changes will not come quickly enough. Therefore, in FY12, you might not see any surprise from the earnings perspective that would push the stock upward.

With Wipro, it is going to be a waiting game. You might have to wait till FY13 for surprise in earnings to push your stock upwards from here. However, consensus and our estimates are already quite low for FY12, reflecting the fact that Wipro will continue to lag behind peers for the foreseeable future.

Q: While this waiting period plays out, do you expect any kind of compression in valuation multiples for Wipro, relative to the larger companies?

A: If you look at the stocks right now, it