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Hmt revenue growth continued to 2.5% in FY2016 vs. 2.2% a year earliner

30-05-2016 • About Hmt ($HMT) • By InTwits

Hmt reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
  • The company operates at negative EBITDA Margin: -93.5%
  • Hmt spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -71.1%
  • Hmt has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 8.6%
  • CAPEX is quite volatile: ₹47m in FY2016, ₹1m in FY2015, ₹2m in FY2014, ₹149m in FY2013, ₹20m in FY2012
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 2.5%. During the last 5 years Revenue growth bottomed in FY2014 at -23.9% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 10.7 pp from -104% to -93.5% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at -118% and was growing since that time.

Net Income margin jumped on 87.4 pp from -201% to -114% in FY2016.

Investments (CAPEX, working capital and M&A)


In FY2016 Hmt had CAPEX/Revenue of 1.6%. Hmt showed decline in CAPEX/Revenue of 2.6 pp from 4.2% in FY2013 to 1.6% in FY2016. It's average CAPEX/Revenue for the last three years was 0.59%.

Leverage (Debt)


Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 68.6% while cash jumped on 298%.

Hmt has no short term refinancing risk: cash is higher than short term debt (288.0%).

Management team


Hmt's CEO Sadasivan Girish Kumar has spent 6 years with the company.

Financial and operational results


Hmt ($HMT) key annual financial indicators

mln. INR201220132014201520162016/2015
P&L
Revenue4,2343,5602,7082,7662,8352.5%
EBITDA-1,315-1,405-3,202-2,883-2,652
Net Income-4,052-4,801-2,650-5,570-3,232
Balance Sheet
Cash7715521,0759163,649298.5%
Short Term Debt2,9721,1642,2612,3311,267-45.6%
Long Term Debt12,47714,39010,86513,1163,590-72.6%
Cash flow
Capex2014921474,740.0%
Ratios
Revenue growth-1.3%-15.9%-23.9%2.2%2.5%
EBITDA growth-35.8%6.8%128.0%-10.0%-8.0%

EBITDA Margin-31.1%-39.5%-118.3%-104.2%-93.5%10.7%
Net Income Margin-95.7%-134.9%-97.8%-201.3%-114.0%87.4%
CAPEX, % of revenue0.5%4.2%0.1%0.0%1.6%1.6%

Peers in Commercial Vehicles


Below we provide Hmt benchmarking against other companies in Commercial Vehicles 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 5 FY2012 FY2013 FY2014 FY2015 FY2016
Ashok Leyland ($ASHOKLEY)--3.3%-8.0%33.6%36.0%
V.S.T.Tillers Tractors ($VSTTILLERS)--9.2%29.6%-11.6%17.2%
Beml ($BEML)-3.2%3.7%-3.5%6.3%
Tata Motors ($TATAMOTORS)-13.5%23.3%13.4%4.5%
Trf ($TRF)--16.0%5.4%-4.2%-0.3%
 
Median (5 companies)18.2%-6.3%4.5%-3.8%6.3%
Hmt ($HMT)--15.9%-23.9%2.2%2.5%


Top companies by EBITDA margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
V.S.T.Tillers Tractors ($VSTTILLERS)14.0%15.1%19.2%19.1%17.5%
Tata Motors ($TATAMOTORS)12.3%12.2%13.5%14.4%14.2%
Ashok Leyland ($ASHOKLEY)9.7%7.0%4.1%10.7%14.3%
Brady & Morris Engineering Co ($BRADYM)---6.9%-
Stone India ($STONEIN)---4.7%-
 
Median (12 companies)11.0%9.6%8.8%3.4%14.2%
Hmt ($HMT)-31.1%-39.5%-118.3%-104.2%-93.5%


Top companies by CAPEX/Revenue, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Tata Motors ($TATAMOTORS)8.5%10.2%11.8%12.4%12.1%
V.S.T.Tillers Tractors ($VSTTILLERS)2.4%6.7%5.9%4.1%0.9%
Abg Shipyard ($ABGSHIP)21.0%9.1%15.2%3.7%-
Ashok Leyland ($ASHOKLEY)5.4%5.2%3.6%1.6%1.3%
Beml ($BEML)4.4%4.8%1.5%1.5%0.8%
 
Median (8 companies)4.9%6.0%4.7%1.5%1.0%
Hmt ($HMT)0.5%4.2%0.1%0.0%1.6%


Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
V.S.T.Tillers Tractors ($VSTTILLERS)36.4%29.3%41.0%28.0%25.2%
Tata Motors ($TATAMOTORS)20.1%16.6%17.2%17.8%14.5%
Ashok Leyland ($ASHOKLEY)12.2%5.8%-0.5%7.6%15.7%
Cranex ($CRANEX)5.5%5.3%5.2%5.3%-
Beml ($BEML)2.6%-2.9%1.9%0.6%2.7%
 
Median (12 companies)11.0%6.7%1.9%2.9%8.6%
Hmt ($HMT)-----


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Trf ($TRF)5.2x-36.0x-19.0x
Beml ($BEML)5.8x-8.0x6.9x3.4x
Ashok Leyland ($ASHOKLEY)2.5x5.0x17.8x5.0x3.1x
Tata Motors ($TATAMOTORS)1.7x1.7x1.2x1.2x1.1x
Brady & Morris Engineering Co ($BRADYM)-1.5x-0.0x0.0x
 
Median (7 companies)3.1x1.7x8.5x1.2x1.1x