Bharat Forges (BFL) 3QFY16 APAT at Rs 1.79bn (-10% YoY, -3% QoQ) was slightly below street expectations. Net sales missed estimates sharply with 12% YoY decline. However, strong EBITDA margins at 31.4% ( 80/30bps YoY/QoQ) partially offset the impact at the operating level. During the quarter, volumes declined 5% YoY because of broad-based weakness in the industrial segment demand and weak export sales in the automotive segment.