Cement major Ambuja Cement on Monday reported a rise of 60 per cent in its standalone net profit for the quarter ended December 31, 2016.

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The company informed the BSE, that its net profit during the quarter under review increased to Rs 175.88 crore from Rs 109.96 crore. 

On the contrary, the company reported a decline of 6.64 per cent in its standalone total income from operations for the fourth quarter to Rs 2,231.03 crore from Rs 2,379.22 crore.

"Our rapid adoption of cashless payment methods in December 2016 quarter helped Ambuja to deliver a strong performance in 2016," Ajay Kapur, Chief Executive Officer of Ambuja Cement was quoted as saying in a statement.

"In 2017, we are well placed to be part of the infrastructure development planned by the government, and the new thrust on affordable housing projects. Further, our larger penetration in the rural outreach buoyed on the back of good monsoon and our range of special products and solutions will provide building solutions for projects right across the country."

According to the cement manufacturer, operating costs for the quarter under review were lower than the prior year due to a significant reduction in energy costs by nine per cent mainly on account of increased use of pet coke and alternative fuels, combined with improved efficiency parameters.

Besides, the company`s Board of Directors recommended a final dividend on equity shares at the rate of Rs 1.20 per share. 

"With the interim dividend of Rs 1.60 per share paid during the year, the total dividend for the year 2016 works out to Rs 2.80 per share," the company added. 1

The cement manufacturer`s scrip price on the BSE gained 0.55 per cent or Rs 1.30 per share to Rs 239.40 per equity share from its previous close of Rs 238.10.

Business outlook-wise, the company said that it expects a healthy cement growth in 2017, supported by government`s continued focus on housing and infrastructure development and in anticipate of volume effects from demonetisation to be reduced by the end of Q1. 

"The announcement of interest subsidy schemes and an interest rate cut, the recent announcement in the union budget for infrastructure development, including the award of infrastructure status to affordable housing and the increased budget allocation for roads, railways and iirigation will all be key drivers for cement demand," the statement said.