Bharat Forges (BFL) 2QFY17 APAT at Rs 1.3bn (-28% YoY, -3% QoQ) came almost in line. Net sales at Rs 8.9bn (-20% YoY) were marginally lower than estimates owing to lower-than-expected tonnage (-15% YoY). EBITDA margins saw 130bps QoQ expansion on efficient cost control and improved productivity. Industrial demand continued to sag.