I found the modules approach in yii which indeed a nice features. But does this means it follows HMVC literally?
In a way yes. You have the same structure in modules as in your application, meaning you have models, controllers, views inside your module. You can even nest modules to have modules inside of modules. So this is basically a HMVC pattern.
For further reading see http://www.yiiframework.com/doc/guide/1.1/en/basics.module