Escorts 3QFY20 performance is a reflection of stability in volumes, benefit of mix improvement and cost savings, all of which should sustain in the coming quarters. Tractor volumes declined ~2% YoY, but net realizations improved ~2.4% YoY (+2% QoQ) to ~INR514.4k (v/s est. Tractor business PBIT margins improved 20bp YoY (+420bp QoQ) to ~14.5%. CE business PBIT margins improved ~130bp YoY (+210bp QoQ) to ~4.8%, driven by mix despite volume decline of 26% YoY. Rail business PBIT margins declined ~150bp YoY (-70bp QoQ) due to higher contribution of new products (having higher import content). It has got an approval for 3 new products and has a We are upgrading our EPS estimates by 9%/5% for FY20/FY21 to reflect the improving outlook for tractor volumes, improving mix and cost savings. We are upgrading our EPS estimates by 9%/5% for FY20/21 to reflect for improving outlook for tractor volumes, improving mix and cost savings.