INR2.25-2.5b in FY21 for new product development and capacity We are upgrading our EPS estimates by 9%/7% for FY21/FY22E to reflect the improving outlook for tractor volumes, mix and cost savings. - Margin has improved due to lower commodity cost Improved product mix (>40hp tractors), as share of 40HP+ tractors has increased to 62% in 1QFY21 (v/s 45-46% YoY) v/s 57-58% in 4QFY20, Subdued discounts during the quarter, which is expected to remain subdued till the supply chain normalizes, and Other expenses being lower by INR300-350m due to (a) no SG&A; expenses in 45 days shutdown (had resulted in no cost on SG&A; of INR300-350m, and (b) no marketing spends, both of which will normalize in the coming It has aggressive plans to cut fixed cost by 10-15% in FY21. Our estimates are not yet factoring in any contribution We are upgrading our EPS estimates by 9%/7% for FY21/22E to reflect the improving outlook for tractor volumes, mix and cost savings.