IDFC Securities sees downside risk to Wipro's earnings

Hitesh Shah, Director, IDFC Securities foresees a downside risk to IT giant Wipro's earnings ahead. He says the company's guidance of 2-4% on a consolidated basis is half percent decline at lower end and 1.5% at higher end given the fact that September is the seasonally strong quarter for the company.

For FY12, he expects Wipro to post 15-16%  revenue growth in dollar terms including SAIC acquisition and SAIC acquisition it could be even lower to about 13%. He expects, HCL to deliver 5-6% revenue growth rate in dollar terms on Q-o-Q basis. Also Read: Wipro's Premji says seeing early signs of positive momentum Below is the verbatim transcript of Shah's interview with Udayan Mukherjee and Mitali Mukherjee of CNBC-TV18. Also watch the accompanying video. Q: What did you make of the guidance that Wipro has set out? A: Clearly guidance looks very weak if you look at their SAIC acquisition which is going to contribute between 2-2.5% of revenues. The guidance which is about 2-4% on a consolidated basis is kind of half percent decline at lower end and 1.5% at higher end. If you look at it organically and to that extent very weak guidance has been given September is a seasonally strongest quarter. Clearly this pushes out Wipro