I am Takaaki Mitsuya, Director and CFO of MIRAIT ONE Corporation. Here, I will speak on the following two points. First, on the third quarter financial results. Then on our full year forecast for fiscal year ending March 2024. First, on the third quarter financial results. Both orders received and Nnet Sales were favorable and grew year-on-year. On the other hand, profits declined year-on-year due to the treatment of large unprofitable projects that occurred in the non-carrier business. I will explain the details in the following slides. First, on orders received. As a result of the growth in the Corporate, Environmental and Social Infrastructure Domain, the non-carrier business, orders grew by JPY 44.9 billion year-on-year to JPY 413.5 billion.
The Environmental and Social Innovation Business grew significantly as we saw contribution from the synergies with Seibu Construction. While the figure also includes JPY 25 billion of construction account carried forward from Kokusai Kogyo, which joined the MIRAIT ONE Group in December last year, we have seen organic growth as well. For the ICT Solution Business, although there was a reactionary decline from the large orders for LAN and other services we saw in the previous year, there was growth in the global and software businesses, which are in the MIRAI Domains, defined as areas to concentrate our management resources to expand in the future. We have also seen growth in the sales of goods for local education related fields.
Orders in the Telecommunications Infrastructure Domain decreased slightly, although to a lesser extent than the decline we saw last year, with the NTT business increasing and the Multi-carrier Business decreasing. As for the breakdown of carrier and non-carrier businesses, the weight of non-carriers has increased to 57%, and the company has begun to make a strong progress towards becoming beyond a telecommunications construction company. The percentage of the MIRAI Domain also increased from 30% to 37%. Net Sales. As was seen with orders received, for the Corporate/Environmental and Social Infrastructure Domain, Environmental and Social Innovation Business and ICT Solution Business both increased year-on-year. For the Telecommunications Infrastructure Domain, the NTT business increased slightly, but the Multi-carrier Business decreased.
Result, Net Sales increased by JPY 23.1 billion- JPY 343.8 billion. The proportion of the MIRAI domain also increased from 30% to 34%. Next is operating income. The reason why this decreased year -on -year by JPY 1.2 billion is as shown in the waterfall chart on this slide. It is because, number one , of the drop in gross profit by JPY 0.8 billion and, number two, of the increase in SG&A by JPY 0.4 billion. For gross profit, while there was an increase of JPY 0.6 billion in the Environmental and Social Innovation Business and JPY 1 billion in the Telecommunications Infrastructure Domain, the decrease of JPY 2.4 billion in the ICT business offset that increase.
In the second quarter, we booked provisions of JPY 1 billion for two large projects in the Environmental and Social Innovation Business and another JPY 1 billion for a large ICT project, which is expected to be highly unprofitable. This had pushed down our profits, which we would have gained from the increase in our top line. In this third quarter, we booked an additional JPY 3 billion as we continued to reinforce our construction system to respond to the time schedule changes and delivery delays for several ICT projects. This was the biggest factor which pushed down our gross profit. On the other hand, the Telecommunications Infrastructure Domain increased profits year-on-year despite a decrease in revenue due to the efforts made to increase productivity.
SG&A costs increased JPY 0.4 billion in real terms. This is because we booked one-time expenses of JPY 0.5 billion related to the M&A of Kokusai Kogyo. Finally, on Net Income. This has decreased from last year's JPY 3.3 billion to JPY 0.9 billion. The large decrease in Net Income compared to the decrease in operating income is due to our company's adoption of the simplified method for tax treatment specific to the quarter. There are no significant items in non-operating income and loss and extraordinary income and loss. Since our profit structure is heavily weighed towards the fourth quarter, tax expenses appear high relative to Net Income in a difficult quarter such as this year. If you look at the full year financial figures, we expect the effective tax rate to normalize.
I would now like to explain our full year earnings forecast for the current fiscal year. As was just explained in the third quarter results overview, orders are strong compared to the previous year's results, and we have an abundant backlog of construction account carried forward. Our full year performance will, as usual, depend on how much work we can complete in the fourth quarter. However, the impact of the occurrence of large unprofitable projects, which was not anticipated at the beginning of the fiscal year, has been significant. As it is difficult to recover from all of the unprofitable projects, we have decided to revise our full year earnings forecast for the fiscal year ending March 2024. This takes into consideration our performance in the third quarter and the outlook for the completion of construction work through the end of the fiscal year.
As shown in the table, orders received revised upwards by JPY 20 billion from JPY 530 billion- JPY 550 billion. Net Sales remain unchanged at JPY 520 billion. Operating income revised downwards by JPY 6 billion from JPY 26 billion- JPY 20 billion. Net Income revised downwards by JPY 4 billion from JPY 18 billion- JPY 14 billion. The next slide shows the main reasons for the revisions. In the current fiscal year, we have boldly taken up the challenge of expanding the MIRAI Domain, which we have positioned as growth areas to be strengthened in the future.
The Environmental and Social Innovation Businesses, which is the core of the MIRAI Domains, were unable to meet their plans set at the beginning of the year, and the Multi-carrier Business was also sluggish due to the investment restraints by telecommunications carriers. Orders and Net Sales on an organic basis is expected to fall short of the initial plan. By incorporating the P&L of Kokusai Kogyo, which joined the MIRAIT ONE Group last December, from the fourth quarter, we expect orders to increase by JPY 20 billion from the initial plan to JPY 550 billion, and Net Sales to reach the initial plan of JPY 520 billion. When we look at our income, there has been a decrease in profit due to the shortfall in the organic Net Sales versus the initial organic plan.
As was explained in the second quarter earnings briefing, it was necessary to book additional provisions for losses on construction contracts due to reinforcement of our system to cope with process changes and delivery delays for several large projects in the ICT and environmental and social infrastructure businesses that comprise the Corporate, Environmental, and Social Domains. Because of these factors, we have revised our operating income forecast downward to JPY 20 billion based on our expectation that profitability will deteriorate by a total of JPY 5 billion. That is JPY 4 billion for ICT and JPY 1 billion for the Environmental and Social Innovation Business. Although all of these projects were the result of our bold challenges for future growth, they also exposed our shortcomings in managing large scale projects. The impact of unprofitable projects is expected to be resolved in the current fiscal year.
We see that our earning capability itself is not lost, reflecting on the fact that, number one, risk estimation at the order stage was not adequate, and number two, regretting the fact that we were unable to minimize profitability deterioration during the construction phase, we will work to thoroughly implement measures to prevent recurrence and improve profitability in the future. As for Kokusai Kogyo, it is expected that they will contribute JPY 4 billion in gross profit, but this will be offset by JPY 3.5 billion in SG&A expenses of the company and goodwill amortization, as well as JPY 0.5 billion in one-time costs associated with the M&A, resulting in an operating income contribution of ±0 for the current fiscal year. We are currently discussing the areas of possible synergies with Kokusai Kogyo.
The aim is for the company to contribute to profit in the next fiscal year and beyond. Accordingly, we have revised our Net Income forecast from JPY 18 billion- JPY 14 billion. For our third quarter results, Kokusai Kogyo is consolidated only in our balance sheet. Since our balance sheet fluctuates greatly due to seasonal factors, the slide shows a comparison table with the same month the previous year, that is the end of December 2022. Total assets increased JPY 79.7 billion, and liabilities increased JPY 78.8 billion, with the major change items being increases of JPY 32 billion in intangible assets and JPY 59.8 billion in interest-bearing debt. As a result of steering the company toward a growth strategy that utilizes debt, the equity ratio was 49.5%.
Goodwill is currently being evaluated at fair value, but is provisionally booked at JPY 32.1 billion. The amortization period is assumed to be 20 years. The JPY 46 billion, consisting of JPY 45.5 billion for the stock acquisition plus JPY 0.5 billion for one-time cost required for this M&A was procured through a bridge loan from a bank. We will consider switching this loan to a stable long-term financing in the future. At this time, our first priority is to procure debt financing so as not to cause dilution of our shares. Lastly, on shareholder returns.
Regarding the total return ratio KPI, we set the target range of 50%-70% in order to, number one, align it with historical actual payment ratios, and number two, clarify how that links with our investments for growth. As a result of the revision in the earnings forecast, the total return ratio for the current fiscal year is expected to exceed 80%. This will be outside of that range from the first year, but we will not change the dividend forecast announced at the beginning of this fiscal year and will continue our basic policy of stable dividend growth and conducting flexible share buybacks. In addition, the company has changed its treasury stock policy from considering cancellation of treasury stock that has no intended use to actively canceling them.
While some of the treasury stock was used last May to provide performance-linked compensation to officers and directors, we decided to cancel 9 million shares of treasury stock, equivalent to 8.7% of outstanding shares, which is most of the treasury stock currently held by the company. We have positioned this fiscal year as the first year for accelerating business growth through human capital growth. We have been working on the transformation of our business structure towards becoming beyond a telecommunications construction company. With your support, the gears of our various initiatives have begun to turn. On the other hand, the shortcomings related to managing large-scale projects was also exposed, resulting in unprofitable projects that pushed down our profits. We will use the lessons learned this time to turn around our business performance in the future.
The company structure is such that profits are concentrated in the fourth quarter. Fortunately, the balance of construction account carried forward is at a record high level. We are aiming to complete these constructions by the end of the fiscal year and achieve our projected performance figures. Regarding our earnings forecast for the next fiscal year, we would like to present them on the day we announce our full year financial results in May. If you have any questions regarding this presentation, please contact our IR department through our website.