GROUND handler and inflight caterer Sats&rsquo joint venture with Air India will design, build, finance and operate a five-tier integrated multi-modal cargo hub at the upcoming Noida International Airport. 

 

The company announced that Air India Sats Airport Services (Aisats) was selected by Yamuna International Airport to build the hub at the upcoming airport in Uttar Pradesh, India on Monday (Feb 13) . 

 

Terms of a concession agreement are expected to be finalised in the coming weeks, although Sats said there is no certainty such an agreement will be signed. 

 

The group said the cargo hub is the first of its kind in India and will be built across 87 acres (36 ha) of land. 

 

It will comprise an integrated cargo terminal with a concession of 20 years, and an integrated warehousing and logistics zone with a concession of 37 years.

 

The hub will include integrated facilities with airside access for items such as general cargo, temperature-controlled goods and express courier shipments. Trucking facilities to support road-to-road, road-to-air, and air-to-road movements will also be provided. 

 

Sats noted that the hub is an integrated, multi-modal infrastructure, and can &ldquo facilitate seamless and best-in-class cargo experience for all stakeholders, and enhance the efficiency of the region&rsquo s supply chain&rdquo . 

 

Sanjay Gupta, chief executive of Aisats, said that its multi-modal connectivity caters to a large catchment area with a huge growth. &ldquo We are certain that this multi-modal cargo hub will truly become the gateway to North India.&rdquo

 

&ldquo India is an important market in Sats&rsquo twin-engine growth strategy, and our partner in India, the Tata Group, has a significant presence in Uttar Pradesh in various businesses,&rdquo added Bob Chi, chief executive of Sats Gateway Services. 

 

Noida International Airport, when completed at the end of 2024, will be the second major international airport in the National Capital Region &ndash a planning region in India including Delhi and several districts surrounding it.

 

SATS S58 0%   has reported earnings or patmi of $0.5 million for the 3QFY2023 ended Dec 31, 2022, 90.2% lower than earnings of $5.1 million in the same quarter the year before.

 

However, the positive patmi comes after the losses in the first two quarters of the year, reflecting an improvement in business conditions and the seasonal high, says SATS. During the 1QFY2023, SATS reported a loss of $22.5 million due to higher costs and lower government subsidies. SATS also reported a loss of $9.9 million in the 2QFY2023.

 

Excluding government reliefs, group patmi would have been a loss of $13.7 million compared to the loss of $33.0 million recorded for the same period the year before.

 

Revenue for the 3QFY2023 rose by 54.5% y-o-y to $475.7 million as business activities increased on the back of a recovery in the aviation industry. Revenue from Food Solutions increased by 39.9% y-o-y to $232.9 million while revenue from Gateway Services increased by 73.0% y-o-y to $242.7 million. The consolidation of Asia Airfreight Terminal Co. Ltd (AAT), which became a subsidiary of the group in March 2022 contributed $30.5 million to its Gateway Services revenue.

 

Expenditure increased by 50.3% y-o-y to $476.8 million on the back of higher business activities and inflation.

 

As a result, the group reported an operating loss of $1.1 million, up 88.4% y-o-y from the previous year&rsquo s operating loss of $9.5 million and 86.3% higher than the $8.0 million in operating loss in the previous quarter.

 

Share of earnings of associates/joint ventures, net of tax fell by 15.7% y-o-y to $10.2 million.

 

Other non-operating loss of $11.3 million mainly comprised the one-off acquisition expenses incurred by the group.

 

In the 9MFY2023, patmi stood at a loss of $32.0 million, down from 9MFY2022&rsquo s patmi of $18.3 million. Excluding government reliefs, group patmi would have been a loss of $65.4 million for the period, an improvement of $33.2 million compared to a loss of $98.6 million in the 9MFY2022.

 

As at Dec 31, 2022, the group&rsquo s total equity fell to $1.73 billion down from $1.83 billion in March 31, 2022. This was due to the loss incurred in the 9MFY2022 and foreign currency (forex) translation losses.

 

Looking ahead, the group says its staffing numbers are now at an &ldquo optimal level&rdquo to meet the higher travel demand and higher demand from its customers.

 

&ldquo The business outlook is expected to improve as China&rsquo s borders reopen. Flights between China and Singapore were a significant contributor of volume prior to the pandemic,&rdquo says SATS.

 

&ldquo Despite headwinds, our underlying business performance has shown improvements as we execute on our twin-engine growth strategy and capture meaningful business value. While cargo volumes have softened, the reopening of China borders is expected to improve volume throughput,&rdquo says Kerry Mok, president and CEO of SATS.

 

&ldquo Alongside our strong Singapore focus, we are building geographic and business resilience with the proposed acquisition of Worldwide Flight Services. We are heartened that at the recent extraordinary general meeting (EGM), shareholders gave us their vote of confidence, supporting this transformational transaction and our growth direction. We are working on closing the acquisition and delivering a smooth transition to unlock the synergies of our combined operations and scale,&rdquo he adds.