Early Cyclical Reversal on the Card; Upgrade to BUY Escorts (ESC) has delivered largely an in-line performance in 2QFY20. While its margin improved in construction equipment segment, the Company witnessed contraction in tractor margin. Its revenue and EBIDTA fell by 5% YoY (-7% QoQ) and 20% YoY (-11% QoQ) to Rs13.2bn and Rs1.3bn vs. our estimate of Rs13.3bn and Rs1.2bn respectively. However, due to tax credit, its adjusted PAT grew by 11% YoY (+30% QoQ) to Rs1.1bn vs our estimates of Rs865mn. Its EBIDTA margin fell by 169bps YoY and 44bps QoQ to 9.6% (vs. our estimate of 9%) mainly due to lower operating leverage and inferior product-mix in tractor segment. Better margins at construction segment...