Hindustan Media Ventures CAPEX surged on 432% and Revenue jumped on 12.2%
25-05-2016 • About Hindustan Media Ventures (
$HMVL) • By InTwits
Hindustan Media Ventures reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hindustan Media Ventures is a growth stock: FY2016 revenue growth was 12.2%, 5 year revenue CAGR was 12.2% at FY2016 ROIC 26.1%
- EBITDA Margin is expanding: 30.3% in FY2016 vs. 21.0% in FY2015 vs. 16.3% in FY2012
- Hindustan Media Ventures 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 6.0%.
- CAPEX is quite volatile: ₹827m in FY2016, ₹155m in FY2015, ₹427m in FY2014, ₹77m in FY2013, ₹457m in FY2012
- The company has highly profitable business model: ROIC is 26.1%
- It operates with high leverage: Net Debt/EBITDA is 0.5x while industry average is 0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 12.2%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.79 pp from 12.9% to 12.1% in FY2016. EBITDA Margin grew at 3.1 pp per annum in FY2012-FY2016.
Net Income margin increased on 2.4 pp from 17.2% to 19.7% in FY2016. Net Income margin grew at 2.1 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Hindustan Media Ventures had CAPEX/Revenue of 9.0%. Hindustan Media Ventures showed CAPEX/Revenue growth of 7.8 pp from 1.2% in FY2013 to 9.0% in FY2016. It's average CAPEX/Revenue for the last three years was 5.6%.
Return on investment
The company operates at high and attractive ROIC (26.1%) and ROE (21.9%). ROIC increased on 6.4 pp from 19.6% to 26.1% in FY2016. ROE increased slightly on 1.0 pp from 20.9% to 21.9% in FY2016. ROE followed a growing trend at 1.5 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and 0.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.1x from 0.3x to 0.5x in FY2016. Debt jumped on 75.5% while cash jumped on 12.9%. Net Debt/EBITDA followed a growing trend at 0.2x per annum in the last 5 years.
Hindustan Media Ventures has short term refinancing risk: cash is only 25.9% of short term debt.
Valuation and dividends
Hindustan Media Ventures's trades at EV/EBITDA 7.4x and P/E 10.8x while industy averages are 17.8x and 21.9x. Hindustan Media Ventures's EV/(EBITDA-CAPEX) is 10.6x with the industry average at 22.8x.
Financial and operational results
Hindustan Media Ventures ($HMVL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,966 | 6,363 | 7,297 | 8,186 | 9,185 | 12.2% |
| EBITDA | 973 | 1,129 | 1,519 | 1,718 | 2,786 | 62.2% |
| Net Income | 653 | 845 | 1,112 | 1,409 | 1,805 | 28.2% |
Balance Sheet
|
|---|
| Cash | 435 | 284 | 259 | 396 | 447 | 12.9% |
| Short Term Debt | 263 | 32 | 203 | 984 | 1,727 | 75.5% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 457 | 77 | 427 | 155 | 827 | 432.4% |
Ratios
|
|---|
| Revenue growth | 15.6% | 6.6% | 14.7% | 12.2% | 12.2% | |
| EBITDA growth | 10.6% | 16.0% | 34.5% | 13.1% | 62.2% | |
|
|---|
| EBITDA Margin | 16.3% | 17.7% | 20.8% | 21.0% | 30.3% | 9.3% |
| Net Income Margin | 11.0% | 13.3% | 15.2% | 17.2% | 19.7% | 2.4% |
| CAPEX, % of revenue | 7.7% | 1.2% | 5.8% | 1.9% | 9.0% | 7.1% |
|
|---|
| ROIC | 17.7% | 18.3% | 22.3% | 19.6% | 26.1% | 6.4% |
| ROE | 16.1% | 17.9% | 19.9% | 20.9% | 21.9% | 1.0% |
| Net Debt/EBITDA | -0.2x | -0.2x | -0.0x | 0.3x | 0.5x | 0.1x |
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Dial ($JUSTDIAL) | - | 39.8% | 27.2% | 27.9% | 17.1% |
| D B Corp ($DBCORP) | - | 13.7% | 19.3% | 8.1% | 0.6% |
| Ht Media ($HTMEDIA) | 15.0% | 2.3% | 7.4% | 4.0% | - |
| Jagran Prakashan ($JAGRAN) | 11.0% | 12.3% | 11.9% | 3.9% | - |
| |
|---|
| Median (4 companies) | 13.0% | 13.0% | 15.6% | 6.0% | 8.9% |
|---|
| Hindustan Media Ventures ($HMVL) | - | 6.6% | 14.7% | 12.2% | 12.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Dial ($JUSTDIAL) | 26.0% | 27.8% | 39.5% | 36.6% | 36.8% |
| Next Mediaworks ($NEXTMEDIA) | - | - | - | 31.4% | - |
| Sambhaav Media ($SAMBHAAV) | - | - | - | 30.7% | - |
| D B Corp ($DBCORP) | 25.9% | 24.8% | 27.1% | 28.1% | 26.1% |
| Jagran Prakashan ($JAGRAN) | 23.4% | 19.5% | 23.2% | 25.8% | - |
| |
|---|
| Median (7 companies) | 24.7% | 22.2% | 25.2% | 28.1% | 31.5% |
|---|
| Hindustan Media Ventures ($HMVL) | 16.3% | 17.7% | 20.8% | 21.0% | 30.3% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Dial ($JUSTDIAL) | 8.9% | 10.0% | 4.5% | 11.5% | 13.7% |
| Ht Media ($HTMEDIA) | 3.8% | 6.4% | 6.9% | 4.1% | - |
| D B Corp ($DBCORP) | 8.9% | 3.6% | 5.5% | 3.6% | 9.9% |
| Jagran Prakashan ($JAGRAN) | 11.2% | 6.6% | 5.3% | 3.1% | - |
| |
|---|
| Median (4 companies) | 8.9% | 6.5% | 5.4% | 3.8% | 11.8% |
|---|
| Hindustan Media Ventures ($HMVL) | 7.7% | 1.2% | 5.8% | 1.9% | 9.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| D B Corp ($DBCORP) | 25.7% | 25.8% | 32.7% | 32.9% | 28.2% |
| Just Dial ($JUSTDIAL) | 58.7% | 32.4% | 34.2% | 31.7% | 33.3% |
| Jagran Prakashan ($JAGRAN) | 19.7% | 11.3% | 19.7% | 20.8% | - |
| Ht Media ($HTMEDIA) | 14.7% | 14.2% | 10.9% | 8.6% | - |
| Arnav Corporation ($ARNAVCORP) | - | - | - | - | - |
| |
|---|
| Median (8 companies) | 14.7% | 11.3% | 19.7% | 26.3% | 30.7% |
|---|
| Hindustan Media Ventures ($HMVL) | 17.7% | 18.3% | 22.3% | 19.6% | 26.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ht Media ($HTMEDIA) | 0.5x | 0.6x | 1.1x | 0.6x | - |
| Jagran Prakashan ($JAGRAN) | 2.0x | 1.5x | 1.2x | 0.1x | - |
| Cyber Media (India) ($CYBERMEDIA) | 4.1x | 6.8x | - | 0.0x | - |
| Next Mediaworks ($NEXTMEDIA) | - | 1.9x | 1.0x | 0.0x | 0.0x |
| Sambhaav Media ($SAMBHAAV) | 1.9x | 2.0x | - | 0.0x | - |
| |
|---|
| Median (7 companies) | 0.5x | 1.5x | 0.5x | 0.0x | 0.0x |
|---|
| Hindustan Media Ventures ($HMVL) | -0.2x | -0.2x | -0.0x | 0.3x | 0.5x |
