JGC Holdings Corporation (JGCCF) Q2 2023 Earnings Call

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Replay transcript excerpt

WEBVTT 00:00:00.031 -- 00:00:03.996 My name is Daguchi, General Manager of the Finance Unit. 00:00:03.996 -- 00:00:08.100 I will give you an overview of the first half results using the presentation material. 00:00:08.100 -- 00:00:09.502 Please 00:00:09.502 -- 00:00:12.183 turn to page 4. 00:00:16.009 -- 00:00:20.893 These are the three highlights from the first half results of FY23. 00:00:21.415 -- 00:00:27.773 Large-scale projects made progress as planned, and net sales were up year over year. 00:00:27.773 -- 00:00:32.950 Some projects, mainly executed by our overseas subsidiaries, required 00:00:32.950 -- 00:00:37.847 risk reviews, which temporarily lowered the profit margin in the first half of the fiscal 00:00:37.847 -- 00:00:39.847 year. 00:00:42.235 -- 00:00:47.510 Overseas results in new contracts remain sluggish, as we generally expect overseas 00:00:47.510 -- 00:00:52.624 projects to be awarded later in the fiscal year, while domestic project orders are steadily 00:00:52.624 -- 00:00:54.489 accumulating. 00:00:54.489 -- 00:00:59.658 Next on page 5, this is the consolidated income statement. 00:00:59.735 -- 00:01:03.780 Sales rose but profit fell over the previous year. 00:01:03.780 -- 00:01:09.887 Net sales rose by 51% year-over-year to 403.2 billion yen. 00:01:09.887 -- 00:01:14.973 Gross profit fell by 11% to 28.4 billion yen. 00:01:14.973 -- 00:01:18.017 Profit ratio declined by 4.9 points to 7.1%. 00:01:18.017 -- 00:01:20.017 This 00:01:20.099 -- 00:01:24.608 was due to lower profit in the total engineering segment. 00:01:24.608 -- 00:01:30.040 Operating profit was down by 31% to 13 billion yen. 00:01:30.040 -- 00:01:36.069 Ordinary profit fell 17% to 25.4 billion yen. 00:01:36.574 -- 00:01:41.445 The drop in ordinary income was smaller compared to that...