Merck Ltd reported Rs.1,988 Mn in Net Revenues, up by 2.6% YoY, but on a QoQ basis Net Revenues fell by 7.1%. EBITDA margin increased by 438 bps YoY to 6.5%. Lower expenses led to higher margins due to 1. Cost of Goods Sold (CoGS) as percentage of revenues decreased by 121 bps YoY (346 bps QoQ) and 2. Other Expenses as percentage of revenues decreased by 466 bps YoY (471 bps QoQ). EPS has increased from Rs.2.14 in Q1 CY14 to Rs.5.80 in Q1 CY15. During Q4 CY14 Merck reported EPS of Rs.0.65. Karvy initiated coverage report on Merck Ltd on May 04, 2015 with a Hold rating. We continue to maintain a Hold rating on Meck Ltd