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Hmt reports 2.2% revenue growth in FY2015 and 14.1 pp EBITDA Margin growth from -118% to -104%

18-06-2015 • About Hmt ($HMT) • By InTwits

Hmt reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • The company operates at negative EBITDA Margin: -104.2%
  • Hmt motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -61.8% for the sames years0
  • Hmt has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 1.3%.
  • CAPEX is quite volatile: 0.96 in FY2015, 2.3 in FY2014, 149 in FY2013, 19.6 in FY2012, 123 in FY2011
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Hmt ($HMT) key annual financial indicators

mln. INR201120122013201420152015/2014
P&L
Revenue4,2904,2343,5602,7082,7662.2%
EBITDA-2,048-1,315-1,405-3,202-2,883
Net Income-4,926-4,052-4,801-2,650-5,570
Balance Sheet
Cash7657715521,075916-14.8%
Short Term Debt4,2702,9721,1642,2612,3313.1%
Long Term Debt9,60512,47714,39010,86513,11620.7%
Cash flow
Capex1232014921-58.2%
Ratios
Revenue growth29.8%-1.3%-15.9%-23.9%2.2%
EBITDA growth31.2%-35.8%6.8%128.0%-10.0%
EBITDA Margin-47.7%-31.1%-39.5%-118.3%-104.2%14.1%
Net Income Margin-114.8%-95.7%-134.9%-97.8%-201.3%-103.5%
CAPEX, % of revenue2.9%0.5%4.2%0.1%0.0%-0.1%

Revenue and profitability


The company's Revenue increased on 2.2% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 14.1 pp from -118% to -104% in FY2015.

Net Income marign dropped on 103 pp from -97.8% to -201% in FY2015.

Capital expenditures (CAPEX) and working capital investments


In FY2015 the company had CAPEX/Revenue of 0.035%. Hmt's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 1.4%.

Leverage (Debt)


Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt jumped on 17.7% in FY2015 while cash dropped on 14.8% in FY2015.

Management team


The company's CEO Sadasivan Girish Kumar has spent 4 years at the company.

Appendix 1: Peers in Commercial Vehicles


Below you can find Hmt benchmarking vs. other companies in Commercial Vehicles 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 5 FY2011 FY2012 FY2013 FY2014 FY2015
Ashok Leyland ($ASHOKLEY)15.5%-3.3%-8.0%33.6%
Tata Motors ($TATAMOTORS)35.7%13.5%23.3%13.4%
Beml ($BEML)2.7%3.2%3.7%-3.5%
V.S.T.Tillers Tractors ($VSTTILLERS)24.2%-9.2%29.6%-11.6%
Abg Shipyard ($ABGSHIP)18.2%-17.2%-20.5%-72.9%
 
Median (5 companies)-16.6%18.7%-6.3%4.5%-3.5%
Hmt ($HMT)-1.3%-15.9%-23.9%2.2%


Top companies by EBITDA margin, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
V.S.T.Tillers Tractors ($VSTTILLERS)17.0%14.0%15.1%19.2%19.1%
Tata Motors ($TATAMOTORS)12.9%12.3%12.2%13.5%14.4%
Ashok Leyland ($ASHOKLEY)11.0%9.7%7.0%4.1%10.7%
Brady & Morris Engineering Co ($BRADYM)6.9%
Stone India ($STONEIN)4.7%
 
Median (11 companies)11.9%11.0%9.6%8.8%4.3%
Hmt ($HMT)-47.7%-31.1%-39.5%-118.3%-104.2%


Top companies by CAPEX/Revenue, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Tata Motors ($TATAMOTORS)6.8%8.5%10.2%11.8%12.4%
V.S.T.Tillers Tractors ($VSTTILLERS)1.3%2.4%6.7%5.9%4.1%
Abg Shipyard ($ABGSHIP)17.0%21.0%9.1%15.2%3.7%
Ashok Leyland ($ASHOKLEY)3.2%5.4%5.2%3.6%1.6%
Beml ($BEML)6.4%4.4%4.8%1.5%1.5%
 
Median (7 companies)4.8%4.9%6.0%4.7%1.6%
Hmt ($HMT)2.9%0.5%4.2%0.1%0.0%


Top companies by ROIC, %

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
V.S.T.Tillers Tractors ($VSTTILLERS)45.9%36.4%29.3%41.0%28.0%
Tata Motors ($TATAMOTORS)19.3%20.1%16.6%17.2%17.8%
Ashok Leyland ($ASHOKLEY)13.6%12.2%5.8%-0.5%7.6%
Cranex ($CRANEX)5.5%5.3%5.2%5.3%
Beml ($BEML)2.3%2.6%-2.9%1.9%0.6%
 
Median (11 companies)11.8%11.0%6.7%1.9%5.3%
Hmt ($HMT)


Top companies by Net Debt / EBITDA

Top 5 FY2011 FY2012 FY2013 FY2014 FY2015
Cranex ($CRANEX)6.1x10.0x9.9x9.0x10.8x
Beml ($BEML)6.9x5.8x8.0x6.9x
Ashok Leyland ($ASHOKLEY)2.0x2.5x5.0x17.8x5.0x
Tata Motors ($TATAMOTORS)1.8x1.7x1.7x1.2x1.2x
Brady & Morris Engineering Co ($BRADYM)1.5x0.0x
 
Median (7 companies)2.3x3.1x1.7x8.5x1.2x