Ambuja Cement has reported 88 per cent increase in December quarter net profit at Rs.338 crore (Rs.179 crore) on the back of better realisation and higher production.

Revenue was up seven per cent at Rs.2,713 crore (Rs.2,530 crore).

The company has announced a final dividend of Rs.2 a share.

It produced 5.85 million tonnes (5 mt) during the quarter due to restocking by dealers post-demonetisation and roll-out of GST. EBITDA was up 61 per cent at Rs.541 crore (Rs.335 crore).

The company plans to set up 3.1 million tonnes per annum clinker plant at Marwar Mundwa in Rajasthan. The board has approved an initial investment of Rs.1,391 crore for a 1.71-mt capacity in the first phase which is expected to be completed in the second-half of 2020.

Ajay Kapur, Managing Director, said the focus on value added products and providing specific solution to address customer needs in the retail segment helped the company improve profitability.

"We would continue to work on selling more premium products in key markets and bring down operational cost," he added.

During the quarter, the company said the input cost increased due to adverse impact of fuel mix on the back of ban on pet coke use in Rajasthan. The impact was mitigated through improved efficiency and cost saving measures.

Along with its subsidiary ACC, the company’s net profit in the quarter was up 81 per cent at Rs. 409 crore, while net sales increased 25 per cent to Rs.6,021 crore.

Both LafargeHolcim Group companies Ambuja Cement and ACC last year sold 49.16 mt (44.11 mt) of cement and clinker against their combined annual production capacity of 63 mt leading to capacity utilisation of 78 per cent.