Take Solutions is down in the red since the opening bell today. The stock opened 9.5% lower at Rs.45 and went down further by 10.5% to hit an intraday low at Rs.44.50. Its 20% LC for the day is at Rs.39.80.

First the disappointment over the earnings. It reported a consolidated net loss for the quarter at Rs.241 crore v/s profit of Rs.46 crore (YoY). This was on a 71.5% drop in net revenue at Rs.166 crore.

Cost rationalization helped slow down the decline but it was offset by the one-time provision of Rs.157 crore for the loss incurred in EU.

And then the news that it was selling its entire 58% stake in APA Engineering, a subsidiary for Rs.17.40 crore and also that it has initiated liquidation proceedings of its German unit. The company said that the liquidity and business constraints, consequent to the impact of Covid-19 pandemic, have significantly impacted operations of the step-down subsidiary.

The company was working only at 10-15% capacity during the Q1.18 trials were disrupted in US and 11 trials in APAC. It said that BA/BE was completely halted till end of May, partially reopened from June though travel restrictions on CRAs for visiting the trial sites continues.