SERAKU (6199) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 FY8/24 reached 16,450 million yen, up 6.4% year-over-year, driven by growth in Digital Integration and Digital Transformation services.

• Operating profit increased 9.1% year-over-year to 1,787 million yen, while ordinary profit declined 2.2% to 1,804 million yen.

• Profit attributable to owners of parent decreased 3.6% year-over-year to 1,151 million yen.

• Engineer utilization rate remained high at 98.1%, supporting operational efficiency.

• The total number of engineers rose to 3,314, driven by an increase in working partner engineers.

Financial highlights

• Gross profit improved to 4,209 million yen (+6.0% YoY); gross profit margin was 25.6%.

• Net income per share was 83.20 yen, down from 85.52 yen in the prior year period.

• Total assets increased to 12,174 million yen as of May 31, 2024, up from 11,254 million yen at the previous fiscal year-end.

• Equity ratio stood at 62.2% as of May 31, 2024.

• Net sales for the full year are projected at 22,000 million yen (+5.5% YoY).

Outlook and guidance

• FY8/24 plan targets net sales of 22,000 million yen (+5.5% YoY), operating profit of 2,240 million yen (+15.2% YoY), and net income of 1,500 million yen.

• Dividend per share is planned to increase to 13.00 yen.

• No revisions to previously announced earnings forecasts.

• Focus on expanding the partner ecosystem, increasing project wins from prime contractors, and boosting operating profit margin.