Ht Media Net Income dropped on 13.4% in 2015 and EBITDA Margin decreased slightly on 1.4 pp from 15.2% to 13.8%
15-05-2015 • About Ht Media (
$HTMEDIA) • By InTwits
Ht Media reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ht Media has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's a lot of higher than industry average of 3.9%.
- CAPEX is quite volatile: 948 in FY2015, 606 in FY2014, 393 in FY2013, 486 in FY2012, 60.3 in FY2011
- The company has business model with low profitability: ROIC is at 8.6%
- It operates with high leverage: Net Debt/EBITDA is 0.6x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ht Media ($HTMEDIA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 17,400 | 20,014 | 20,484 | 22,007 | 22,897 | 4.0% |
| EBITDA | 3,579 | 3,619 | 3,764 | 3,348 | 3,154 | -5.8% |
| Net Income | 1,809 | 1,655 | 1,677 | 2,075 | 1,798 | -13.4% |
Balance Sheet
|
|---|
| Cash | 1,081 | 1,571 | 1,519 | 1,180 | 1,773 | 50.2% |
| Short Term Debt | 1,945 | 2,750 | 2,915 | 4,234 | 3,015 | -28.8% |
| Long Term Debt | 1,027 | 712 | 911 | 468 | 676 | 44.4% |
Cash flow
|
|---|
| Capex | 776 | 762 | 1,321 | 1,528 | 930 | -39.1% |
Ratios
|
|---|
| Revenue growth | -37.5% | 15.0% | 2.3% | 7.4% | 4.0% | |
| EBITDA growth | 39.1% | 1.1% | 4.0% | -11.1% | -5.8% | |
| EBITDA Margin | 20.6% | 18.1% | 18.4% | 15.2% | 13.8% | -1.4% |
| Net Income Margin | 10.4% | 8.3% | 8.2% | 9.4% | 7.9% | -1.6% |
| CAPEX, % of revenue | 4.5% | 3.8% | 6.4% | 6.9% | 4.1% | -2.9% |
| ROIC | 16.8% | 14.7% | 14.2% | 10.9% | 8.6% | -2.3% |
| ROE | 15.9% | 12.0% | 11.0% | 12.4% | 9.9% | -2.6% |
| Net Debt/EBITDA | 0.5x | 0.5x | 0.6x | 1.1x | 0.6x | -0.4x |
Revenue and profitability
The company's Revenue increased on 4.0% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 15.2% to 13.8% in FY2015.
Net Income marign decreased slightly on 1.6 pp from 9.4% to 7.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.1% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 5.8%.
Return on investment
The company operates at low ROIC (8.62%) and ROE (9.86%). ROIC decreased on 2.3 pp from 10.9% to 8.6% in FY2015. ROE decreased on 2.6 pp from 12.4% to 9.9% in FY2015.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 1.1x to 0.6x in FY2015. Debt dropped on 21.5% in FY2015 while cash jumped on 50.2% in FY2015.
Management team
Ht Media's CEO Rajiv Verma has spent 9 years at the company.
Appendix 1: Peers in Publishing
Below you can find Ht Media 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% |
| Hindustan Media Ventures ($HMVL) | | 15.6% | 6.6% | 14.7% | 12.2% |
| Jagran Prakashan ($JAGRAN) | -43.9% | 11.0% | 12.3% | 11.9% | |
| |
|---|
| Median (4 companies) | -59.6% | 14.0% | 13.0% | 17.0% | 10.1% |
|---|
| Ht Media ($HTMEDIA) | | 15.0% | 2.3% | 7.4% | 4.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Next Mediaworks ($NEXTMEDIA) | | | | | 31.4% |
| D B Corp ($DBCORP) | 33.3% | 25.9% | 24.8% | 27.1% | 28.1% |
| Hindustan Media Ventures ($HMVL) | 17.0% | 16.3% | 17.7% | 20.8% | 21.0% |
| |
|---|
| Median (3 companies) | 27.6% | 24.7% | 22.2% | 25.2% | 28.1% |
|---|
| Ht Media ($HTMEDIA) | 20.6% | 18.1% | 18.4% | 15.2% | 13.8% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hindustan Media Ventures ($HMVL) | 5.7% | 7.7% | 1.2% | 5.8% | 1.9% |
| 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 ($JUSTDIAL) | 10.7% | 8.9% | 10.0% | 4.5% | |
| |
|---|
| Median (4 companies) | 11.2% | 8.9% | 5.1% | 5.4% | 2.8% |
|---|
| Ht Media ($HTMEDIA) | 4.5% | 3.8% | 6.4% | 6.9% | 4.1% |
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% |
| Hindustan Media Ventures ($HMVL) | 23.0% | 17.7% | 18.3% | 22.3% | 19.6% |
| Jagran Prakashan ($JAGRAN) | | 19.7% | 11.3% | 19.7% | |
| Next Mediaworks ($NEXTMEDIA) | -5.6% | -12.0% | 1.4% | 3.8% | |
| |
|---|
| Median (8 companies) | 15.6% | 17.7% | 11.3% | 22.3% | 26.3% |
|---|
| Ht Media ($HTMEDIA) | 16.8% | 14.7% | 14.2% | 10.9% | 8.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jagran Prakashan ($JAGRAN) | 0.5x | 2.0x | 1.5x | 1.2x | |
| Next Mediaworks ($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 | |
| Hindustan Media Ventures ($HMVL) | -0.2x | -0.2x | -0.2x | -0.0x | 0.3x |
| |
|---|
| Median (6 companies) | 0.5x | 0.2x | 1.5x | 0.0x | 0.0x |
|---|
| Ht Media ($HTMEDIA) | 0.5x | 0.5x | 0.6x | 1.1x | 0.6x |
