Ht Media CAPEX jumped on 524% and Revenue increased on 9.2%
26-05-2016 • About Ht Media (
$HTMEDIA) • By InTwits
Ht Media reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ht Media has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.9%. At the same time it's in pair with industry average of 11.8%
- CAPEX is quite volatile: ₹5,807m in FY2016, ₹930m in FY2015, ₹1,528m in FY2014, ₹1,321m in FY2013, ₹762m in FY2012
- The company has highly profitable business model: ROIC is 16.5%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 9.2%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.2 pp from 17.2% to 19.4% in FY2016.
Net Income margin decreased slightly on 1.1 pp from 7.9% to 6.7% in FY2016.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 23.2% in FY2016. The company showed fast CAPEX/Revenue growth of 16.8 pp from 6.4% in FY2013 to 23.2% in FY2016. Average CAPEX/Revenue for the last three years was 11.4%. The company maintained rich investment policy and has spent a big chunk of EBITDA (97.9%) to CAPEX.
Return on investment
The company operates at good ROIC (16.5%) while ROE is low (8.5%). ROIC increased on 7.9 pp from 8.6% to 16.5% in FY2016. ROE decreased slightly on 1.4 pp from 9.9% to 8.5% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2015 at 8.6%.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA surged on 0.9x from 0.6x to 1.5x in FY2016. Debt surged on 186% while cash decreased on 2.7%.
Ht Media has short term refinancing risk: cash is only 16.9% of short term debt.
Management team
Ht Media's CEO Rajiv Verma has spent 11 years with the company.
Financial and operational results
Ht Media ($HTMEDIA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 20,014 | 20,484 | 22,007 | 22,897 | 25,008 | 9.2% |
| SG&A | | | | | 2,354 | |
| EBITDA | 3,619 | 3,764 | 3,348 | 3,154 | 5,932 | 88.1% |
| Net Income | 1,655 | 1,677 | 2,075 | 1,798 | 1,678 | -6.7% |
Balance Sheet
|
|---|
| Cash | 1,571 | 1,519 | 1,180 | 1,773 | 1,725 | -2.7% |
| Short Term Debt | 2,750 | 2,915 | 4,234 | 3,015 | 10,179 | 237.6% |
| Long Term Debt | 712 | 911 | 468 | 676 | 393 | -41.8% |
Cash flow
|
|---|
| Capex | 762 | 1,321 | 1,528 | 930 | 5,807 | 524.1% |
Ratios
|
|---|
| Revenue growth | 15.0% | 2.3% | 7.4% | 4.0% | 9.2% | |
| EBITDA growth | 1.1% | 4.0% | -11.1% | -5.8% | 88.1% | |
|
|---|
| EBITDA Margin | 18.1% | 18.4% | 15.2% | 13.8% | 23.7% | 9.9% |
| SG&A, % of revenue | | | | | 9.4% | |
| Net Income Margin | 8.3% | 8.2% | 9.4% | 7.9% | 6.7% | -1.1% |
| CAPEX, % of revenue | 3.8% | 6.4% | 6.9% | 4.1% | 23.2% | 19.2% |
|
|---|
| ROIC | 14.7% | 14.2% | 10.9% | 8.6% | 16.5% | 7.9% |
| ROE | 12.0% | 11.0% | 12.4% | 9.9% | 8.5% | -1.4% |
| Net Debt/EBITDA | 0.5x | 0.6x | 1.1x | 0.6x | 1.5x | 0.9x |
Peers in Publishing
Below we provide Ht Media benchmarking against other companies in Publishing industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Dial ($JUSTDIAL) | - | 39.8% | 27.2% | 27.9% | 17.1% |
| Hindustan Media Ventures ($HMVL) | - | 6.6% | 14.7% | 12.2% | 12.2% |
| D B Corp ($DBCORP) | - | 13.7% | 19.3% | 8.1% | 0.6% |
| |
|---|
| Median (3 companies) | 11.0% | 13.0% | 17.0% | 10.1% | 12.2% |
|---|
| Ht Media ($HTMEDIA) | - | 2.3% | 7.4% | 4.0% | 9.2% |
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 ($JAGRAN) | 23.4% | 19.5% | 23.2% | 25.8% | - |
| |
|---|
| Median (7 companies) | 24.7% | 22.2% | 25.2% | 28.1% | 30.3% |
|---|
| Ht Media ($HTMEDIA) | 18.1% | 18.4% | 15.2% | 13.8% | 23.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Dial ($JUSTDIAL) | 8.9% | 10.0% | 4.5% | 11.5% | 13.7% |
| D B Corp ($DBCORP) | 8.9% | 3.6% | 5.5% | 3.6% | 9.9% |
| Hindustan Media Ventures ($HMVL) | 7.7% | 1.2% | 5.8% | 1.9% | 9.0% |
| |
|---|
| Median (3 companies) | 8.9% | 5.1% | 5.4% | 3.4% | 9.9% |
|---|
| Ht Media ($HTMEDIA) | 3.8% | 6.4% | 6.9% | 4.1% | 23.2% |
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 ($JAGRAN) | 19.7% | 11.3% | 19.7% | 20.8% | - |
| Hindustan Media Ventures ($HMVL) | 17.7% | 18.3% | 22.3% | 19.6% | 26.1% |
| Arnav Corporation ($ARNAVCORP) | - | - | - | - | - |
| |
|---|
| Median (8 companies) | 17.7% | 11.3% | 22.3% | 26.3% | 28.2% |
|---|
| Ht Media ($HTMEDIA) | 14.7% | 14.2% | 10.9% | 8.6% | 16.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hindustan Media Ventures ($HMVL) | -0.2x | -0.2x | -0.0x | 0.3x | 0.5x |
| Jagran Prakashan ($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 ($SAMBHAAV) | 1.9x | 2.0x | - | 0.0x | 0.0x |
| |
|---|
| Median (7 companies) | 0.2x | 1.5x | 0.0x | 0.0x | 0.0x |
|---|
| Ht Media ($HTMEDIA) | 0.5x | 0.6x | 1.1x | 0.6x | 1.5x |
