Persistent Systems Achieves Prestigious AA+ Credit Rating

Persistent Systems Earns a Remarkable AA+ (Stable) Rating

Reflecting strong financial performance and enhancing stakeholder trust

Persistent Systems (BSE: 533179) and (NSE: PERSISTENT), a renowned provider of Digital Engineering and Enterprise Modernization solutions, has recently obtained an impressive AA+ (Stable) credit rating from ICRA. This achievement underscores the company’s robust financial stance, operational excellence, and its ability to navigate through adaptive business environments.

ICRA's Detailed Rating Assessment

ICRA Limited is recognized as a professional credit rating agency renowned for its meticulous approach in evaluating the financial health of companies. Their assessment involves a thorough review of financial documents, in-depth discussions with the leadership team, and a comprehensive analysis of business operations. Several pivotal factors such as revenue growth, operational efficiency, capital stability, and liquidity of the business are meticulously analyzed, indicating long-term sustainability.

Significance of the AA+ (Stable) Rating

The acknowledgment of this AA+ (Stable) rating from ICRA serves as a vital trust indicator to stakeholders. It exemplifies Persistent Systems' dedication to sustained growth and adaptability amid fluctuating market conditions. The strengths emphasized by ICRA span across various aspects of the organization, including:

Proven Leadership and Customer Relationships

Persistent boasts an experienced leadership team with a commendable operational record, further enhanced by strong relationships with a diverse clientele across numerous sectors.

Robust Financial Performance

The company’s notable revenue growth is complemented by a solid order backlog, providing significant visibility in terms of revenue flow. This momentum is fueled by a well-diversified portfolio that includes both large and medium-scale projects, ensuring continuous business engagement and new growth opportunities.

Solid Financial Stability

Persistent's strong cash flow generation and healthy capital structure highlight its financial stability. This factor positions the company favorably to maintain its growth trajectory and adeptly respond to upcoming market opportunities.

Expanding Opportunities in the Market

The AA+ (Stable) rating enhances Persistent's position when pursuing potential contracts, particularly with larger clients that prioritize a solid financial foundation in their vendor selection. This rating offers a trustworthy assurance of Persistent's financial robustness, facilitating its strategic engagements and market expansion.

Words from the CEO

Sandeep Kalra, Chief Executive Officer of Persistent Systems, expressed, "Achieving the [ICRA]AA+ (Stable) rating is a demonstration of our strong business core, financial positioning, and operational excellence. This accolade reflects the unwavering trust we have cultivated with our clients, shareholders, and employees over the years. We remain committed to industry-leading performance through diligent execution, innovative approaches, and global expansion, while ensuring a healthy financial structure and liquidity. Our objective is to sustain this growth momentum and deliver substantial value for all stakeholders involved."

About Persistent Systems

Persistent Systems (BSE & NSE: PERSISTENT) operates as a global service provider, delivering exceptional Digital Engineering and Enterprise Modernization solutions across various industries. With a workforce exceeding 23,200 situated in 19 countries, Persistent is devoted to client success and innovation. The company offers a broad range of services, including AI-enhanced software engineering, product development, data analytics, cloud solutions, and automation services. Recognized as the "Most Promising Company" of the Year by CNBC-TV18 at the 2023 India Business Leader Awards, Persistent has taken strides toward sustainability, achieving carbon neutrality and actively participating in the United Nations Global Compact, aligning with principles concerning human rights, labor, environmental efforts, and anti-corruption. With a remarkable 327% growth in brand value since 2020, Persistent stands out as the fastest-growing IT services brand in the 2024 Brand Finance India 100 Report.

Frequently Asked Questions

What does the AA+ (Stable) rating signify for Persistent Systems?

The AA+ (Stable) rating indicates a strong financial position, operational resilience, and trust from stakeholders.

How does ICRA assess a company's credit rating?

ICRA conducts an in-depth examination of financial statements, engages with top executives, and analyzes business performances.

What are the main strengths highlighted by ICRA for Persistent Systems?

The key strengths include experienced leadership, robust revenue growth, and solid financial health.

How will this rating impact Persistent Systems' business opportunities?

This rating enhances credibility with larger clients, aiding in securing key engagements and diversifying market presence.

What are the commitments of Persistent Systems toward sustainability?

Persistent Systems is committed to sustainable practices, achieving carbon neutrality and aligning with global standards on responsible business.

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