Daily Price Movement / General Discussion, page-43689

Interest cost will not be a problem as we keep on scaling and new expansion get better rating for their respective warehouse

FY 2020 Int Cost $39 mill when Rev $160 million
FY 2021 Int cost $59 mill when Rev $397 million

In percentage terms FY 20 was 24 percent n FY 21 reduced significantly to 14 percent

This figure May reach 10-12 percent for FY 22

Even Bad Debts plus provisioning has reduced by 3 percent of revenue and will keep decreasing

Bank transaction cost was 17 percent for FY 21 which increased significantly from 8 percent due to card product adoption but as the volume grows the cost will come down and the impact will be seen in the HY 22 report

Decrease in all the above costs will have a significant impact on the gross profit which stands at 34.75 percent of revenue

Employee costs are the major cost at the operating level apart from marketing which I give $100 million…1500 employees already means $150-200 million on employee cost or May be slightly more as at the FY end Zip had around 1000 employees and the employee cost of acquisition will be just for seven months

It is very difficult to have a GP ratio of 50 percent of revenue but the day reaches that number Zip will be easily profitable

This is the reason why I say Zip is nearing profitability