New Delhi, Aug. 25 -- Despite weak operating leverage and higher investments, IT services companies maintained stable profitability, supported by effective cost-control measures and favourable currency movements, according to a Systemix report.

The sector posted modest revenue growth during the seasonally strong quarter, with Tier-I companies recording quarter-on-quarter (QoQ) constant-currency growth ranging from a decline of 1.2 per cent to growth of 2.6 per cent.

The report attributed the subdued growth to company-specific challenges, delays in deal ramp-ups and difficult macroeconomic conditions.

Constant-currency growth measures financial performance using fixed exchange rates, removing the impact of currency fluctuations and allo...