Hindustan Media Ventures reports 26.7% Net Income growth and almost no change in EBITDA Margin of 21.0%
14-05-2015 • About Hindustan Media Ventures (
$HMVL) • By InTwits
Hindustan Media Ventures reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hindustan Media Ventures has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 4.5%.
- CAPEX is quite volatile: 155 in FY2015, 427 in FY2014, 77.3 in FY2013, 457 in FY2012, 293 in FY2011
- The company has highly profitable business model: ROIC is at 19.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.3x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hindustan Media Ventures ($HMVL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,162 | 5,966 | 6,363 | 7,297 | 8,186 | 12.2% |
| EBITDA | 880 | 973 | 1,129 | 1,519 | 1,718 | 13.1% |
| Net Income | 536 | 653 | 845 | 1,112 | 1,409 | 26.7% |
Balance Sheet
|
|---|
| Cash | 357 | 435 | 284 | 259 | 396 | 52.7% |
| Short Term Debt | 205 | 263 | 32 | 203 | 984 | 384.2% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 293 | 457 | 77 | 427 | 155 | -63.6% |
Ratios
|
|---|
| Revenue growth | -44.5% | 15.6% | 6.6% | 14.7% | 12.2% | |
| EBITDA growth | 236.1% | 10.6% | 16.0% | 34.5% | 13.1% | |
| EBITDA Margin | 17.0% | 16.3% | 17.7% | 20.8% | 21.0% | 0.2% |
| Net Income Margin | 10.4% | 11.0% | 13.3% | 15.2% | 17.2% | 2.0% |
| CAPEX, % of revenue | 5.7% | 7.7% | 1.2% | 5.8% | 1.9% | -4.0% |
| ROIC | 23.0% | 17.7% | 18.3% | 22.3% | 19.6% | -2.7% |
| ROE | 23.6% | 16.1% | 17.9% | 19.9% | 20.9% | 1.0% |
| Net Debt/EBITDA | -0.2x | -0.2x | -0.2x | -0.0x | 0.3x | 0.4x |
Revenue and profitability
Hindustan Media Ventures's Revenue surged on 12.2% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign increased slightly on 2.0 pp from 15.2% to 17.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.9% in FY2015. The company's CAPEX/Revenue decreased on 5.8 pp from 7.7% in FY2012 to 1.9% in FY2015. For the last three years the average CAPEX/Revenue was 3.0%.
Return on investment
The company operates at high and attractive ROE (20.90%) while ROIC is a bit lower (19.60%). ROIC decreased on 2.7 pp from 22.3% to 19.6% in FY2015. ROE increased slightly on 1.00 pp from 19.9% to 20.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 0.6x. Net Debt / EBITDA jumped on 0.4x from -0.037x to 0.3x in FY2015. Debt surged on 384% in FY2015 while cash surged on 52.7% in FY2015.
Valuation
The company's trades at EV/EBITDA 10.4x and P/E 12.3x while industy averages are 10.5x and 26.1x. Hindustan Media Ventures's EV/(EBITDA-CAPEX) is 11.4x with the industry average at 4.7x.
Appendix 1: Peers in Publishing
Below you can find Hindustan Media Ventures benchmarking vs. other companies in Publishing industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Just Dial ($JUSTDIAL) | -75.2% | 44.4% | 39.8% | 27.2% | |
| D B Corp ($DBCORP) | | 12.4% | 13.7% | 19.3% | 8.1% |
| Jagran Prakashan ($JAGRAN) | -43.9% | 11.0% | 12.3% | 11.9% | |
| Ht Media ($HTMEDIA) | -37.5% | 15.0% | 2.3% | 7.4% | |
| |
|---|
| Median (4 companies) | -43.9% | 13.7% | 13.0% | 15.6% | 8.1% |
|---|
| Hindustan Media Ventures ($HMVL) | | 15.6% | 6.6% | 14.7% | 12.2% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Just Dial ($JUSTDIAL) | 25.4% | 26.0% | 27.8% | 39.5% | |
| D B Corp ($DBCORP) | 33.3% | 25.9% | 24.8% | 27.1% | 28.1% |
| Jagran Prakashan ($JAGRAN) | 29.8% | 23.4% | 19.5% | 23.2% | |
| Ht Media ($HTMEDIA) | 20.6% | 18.1% | 18.4% | 15.2% | |
| |
|---|
| Median (4 companies) | 27.6% | 24.7% | 22.2% | 25.2% | 29.8% |
|---|
| Hindustan Media Ventures ($HMVL) | 17.0% | 16.3% | 17.7% | 20.8% | 21.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ht Media ($HTMEDIA) | 4.5% | 3.8% | 6.4% | 6.9% | |
| D B Corp ($DBCORP) | 11.8% | 8.9% | 3.6% | 5.5% | 3.6% |
| Jagran Prakashan ($JAGRAN) | 15.1% | 11.2% | 6.6% | 5.3% | |
| Just Dial ($JUSTDIAL) | 10.7% | 8.9% | 10.0% | 4.5% | |
| |
|---|
| Median (4 companies) | 11.2% | 8.9% | 6.5% | 5.4% | 3.6% |
|---|
| Hindustan Media Ventures ($HMVL) | 5.7% | 7.7% | 1.2% | 5.8% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Just Dial ($JUSTDIAL) | 50.3% | 58.7% | 32.4% | 34.2% | |
| D B Corp ($DBCORP) | 33.4% | 25.7% | 25.8% | 32.7% | 32.9% |
| Jagran Prakashan ($JAGRAN) | | 19.7% | 11.3% | 19.7% | |
| Ht Media ($HTMEDIA) | 16.8% | 14.7% | 14.2% | 10.9% | |
| Next Mediaworks ($NEXTMEDIA) | -5.6% | -12.0% | 1.4% | 3.8% | |
| |
|---|
| Median (8 companies) | 12.5% | 14.7% | 11.3% | 19.7% | 32.9% |
|---|
| Hindustan Media Ventures ($HMVL) | 23.0% | 17.7% | 18.3% | 22.3% | 19.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jagran Prakashan ($JAGRAN) | 0.5x | 2.0x | 1.5x | 1.2x | |
| Ht Media ($HTMEDIA) | 0.5x | 0.5x | 0.6x | 1.1x | |
| Next Mediaworks ($NEXTMEDIA) | 11.9x | | 1.9x | 1.0x | 0.0x |
| D B Corp ($DBCORP) | 0.3x | 0.2x | 0.1x | 0.0x | -0.1x |
| Arnav Corporation ($ARNAVCORP) | | 0.0x | | 0.0x | |
| |
|---|
| Median (6 companies) | 0.5x | 0.5x | 1.5x | 0.5x | -0.1x |
|---|
| Hindustan Media Ventures ($HMVL) | -0.2x | -0.2x | -0.2x | -0.0x | 0.3x |
