Escorts 2QFY18 results significantly outperformed estimates. Revenue grew by 26% YoY on the back of grow volume growth in the tractor segment. Reported EBITDA margin was 460bps higher YoY (adjusted for Rs260mn one-off payment, margins would increase further). Cost reduction measures, operating leverage and turnaround in construction equipment business helped margin expansion during the quarter. Tractor volume growth in 2HFY18 is expected to moderate as compared with 1HFY18. However other segments are expected to witness robust growth in revenues. We expect EBITDA margins in FY18/FY19 to witness gradual...