Financial summary for Q2 of FY2023 (Reporting Period 61)
Market environment
●While both control of the seventh wave of COVID-19 infections in Japan and recovery of economic activities are being sought, the demand for engineers in the automotive and semiconductor industries remain strong.
●Projects related to carbon neutrality, including next-generation batteries for EVs, have been implemented actively.
State of engineer dispatching business
●The number of operative personnel surpassed that of the same period of the preceding year.
(●Number of engineers increased; utilization rate remained high due to the recovery trend in the demand for engineers.
●Placement of newly graduated engineers who joined us in 2022 progressed ahead of the initial schedule.)
●The unit price of engineers dropped slightly from the same period of the preceding year.
(Prioritized placement negotiations for unplaced engineers)
●Total work person-hours dropped slightly from the same period of the preceding year.
(The number of work days changed due to the difference in the holiday calendar from the preceding year.)
Expenses
●Progress in the placement of unplaced personnel led to a decrease in labor costs in SG&A expenses and an increase in the cost of sales.
(Labor costs connected to engineers are recorded as SG&A expenses until they are assigned to our client companies, after which the costs are recorded under cost of sales.)
●SG&A expenses increased slightly.
(Despite a decrease in labor costs, expenses for recruiting, travel, transportation, and others increased with a recovery in our recruiting and sales activities.)