Bharat Forge’s (BFL) 1QFY17 APAT at Rs 1.3bn (-48% YoY, -20% QoQ) was well below expectations. Net sales at Rs 9.6bn (-19% YoY) were a miss on account of sharper-than-expected decline in exports (-37% YoY). EBITDA margins saw 370bps QoQ drop on higher other expenses (+600bps QoQ), partially offset by gross margins benefiting from lower RM prices. Industrial demand continued to sag. HDFC Securities Maintain BUY with a revised TP of Rs 906 based on 25x FY18E EPS.