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Persistent Systems Receives AA+ Credit Rating from ICRA Limited

Persistent Systems, a global leader in digital engineering and enterprise modernization, has proudly announced that it has received an AA+ (stable) credit rating from ICRA Limited. This rating underscores the company's solid financial position, commercial resilience, and operational excellence. The recognition from ICRA serves as a testament to Persistent's sustained growth trajectory and ability to navigate dynamic macroeconomic conditions.

ICRA, India’s premier independent investment information and credit rating agency, carries out a thorough assessment process that includes detailed evaluations of financial statements, in-depth discussions with management, and a thorough analysis of business performance. The key factors considered in this evaluation include revenue growth, operational efficiency, capital structure, and liquidity position. Such meticulous scrutiny helps ascertain the financial resilience and long-term stability of the entity being rated.

According to ICRA, the AA+ (stable) rating is a strong endorsement of Persistent’s growth momentum and emphasizes its capability to withstand economic fluctuations. ICRA has highlighted several strengths that contributed to this notable rating:
1. Experienced Management: Persistent boasts of a seasoned leadership team with proven operational expertise and established relationships with a diverse customer base across various industries.
2. Robust Revenue Growth: Continuous growth in revenue and a healthy order book provide consistent revenue visibility, supported by a variety of large and medium-sized contracts in key sectors, complemented by a rising share of new deals.
3. Strong Financial Profile: Persistent's solid financial foundation is evident through healthy cash flows and a sound capital structure, which reflect its financial stability. This position enables the company to maintain growth momentum and effectively capitalize on future opportunities.

The significance of such a financial rating becomes even clearer when considering its implications on bidding for larger client contracts. Major clients often demand evidence of robust financial health as part of their supplier selection criteria. As a result, the AA+ (stable) rating serves as a credible endorsement of Persistent’s financial soundness, enhancing the company's ability to secure strategic commitments and expand its enterprise market presence.

Sandeep Kalra, the Chief Executive Officer and Managing Director of Persistent, expressed, “We are immensely proud to receive the AA+ (stable) rating from ICRA, which reflects the strength of our business fundamentals, financial health, and operational excellence. This acknowledgment highlights the trust we've built with our clients, shareholders, and employees over the years. We will continue to deliver industry-leading performance through disciplined execution, innovation, and global expansion while upholding a robust capital structure and maintaining a healthy liquidity position. Through these efforts, we aim to sustain our growth trajectory and create long-term value for all our stakeholders.”

About Persistent Systems

Founded to provide digital engineering and enterprise modernization services to organizations across various sectors, Persistent Systems stands out as a global powerhouse, employing over 23,200 personnel across 19 countries. The company's focus on innovation allows it to deliver a comprehensive range of services, including AI-based software engineering, product development, data analytics, customer experience transformation, cloud computing, and intelligent automation. Recognized as the 'Most Promising Company' by CNBC-TV18 during the 2023 India Business Leader Awards, Persistent has also achieved carbon neutrality, reinforcing its commitment to sustainability and responsible business practices. As a participant in the UN Global Compact, the company aligns its operations with universal principles relating to human rights, labor, environmental stewardship, and anti-corruption. Furthermore, Persistent has demonstrated remarkable growth, registering a 327% increase in brand value since 2020, ranking it as the fastest-growing IT services brand in the 2024 Brand Finance India 100 report.

For more information, visit www.persistent.com.