I have made sure that the VMTs and VTFs of a model I made have the same name as the materials I used in Blender.
QC File
$modelname "scythe.mdl"
$body scythe "scythe.smd"
$cdmaterials "materials/"
$sequence idle "scythe.smd"
The qc file is located in the scythe directory.
SMD is below