Led by lower volume, Ramkrishna Forgings (RFL) has delivered a weak performance in 1QFY20 with its revenue declining by 8% YoY and 14% QoQ to Rs3.8bn (vs. our estimate of Rs3.9bn). Its volume declined by 14% YoY and 6% QoQ to 28,558 tonne owing to slower M&HCV; sales in the wake of higher axle load norm, production cut by OEMs and ongoing economic slowdown. While EBITDA dropped by 17% YoY and 19% QoQ to Rs722mn (slipping our estimate by 4%), EBIDTA margin contracted by 204bps YoY and 112bps QoQ to 19% owing to 100bps YoY (-235bps QoQ) rise in RM/sales to 49.8%, despite 25bps YoY reduction in other Expenditure/Sales to 24.8%. However, staff cost/sales increased by 130bps YoY and 75bps QoQ to 6.4% due to negative...