Fintech major Paytm’s parent One 97 Communications jumped nearly 2% to Rs 969.65 on the BSE despite reporting weak Q3 results.

The company on Friday announced a consolidated net loss of Rs 778.5 crore for the quarter ended December 31, 2021. One 97 Communications lost Rs 481.70 crore in the September quarter and Rs 535 crore in the year-ago period.

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Consolidated revenue from operations increased by 89% year on year (YoY) to Rs 1,456 crore in the quarter under review, compared to Rs 772 crore in the same period of the previous year.

“The strong growth was driven by an increase in merchant payments processed through MDR bearing instruments (Paytm Wallet, Paytm bank account, other banks’ net banking, debit and credit cards), disbursements of loans on platform and recovery of commerce business from the Covid impact,” the fintech company said in a regulatory filing.

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Furthermore, contribution profit (defined as revenue from operations less payment processing charges, promotional cashback and incentives, and other direct expenditures) increased from 8.9% in Q3 FY21 to 31.2% in Q3 FY22.

The company’s EBITDA margin increased to (27%) of revenues in Q3 FY22 from (63%) of revenues in Q3 FY21, and (39%) of revenues in Q2 FY22.

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Average Monthly Transacting Users (MTU), or the number of unique users who have completed at least one successful financial transaction in a month, increased by 37% year on year to 64.4 million in Q3 FY22.

Merchant payments processed through all instruments (Paytm Wallet, Paytm Payments bank account, other banks online banking, credit and debit cards, UPI, etc.) increased by 123% year on year.

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It went on to say that the platform currently has over 350 million users and a merchant base of 24.9 million (from 20.0 million a year ago).