Mumbai, Jan. 30: Two shutdowns at copper smelters and a rise in expenses on liquid fuel have hit the profitability of Hindalco Industries Ltd, one of the country’s largest producers of aluminium and copper.

The company’s third-quarter earnings dipped 13 per cent to Rs 300.6 crore from Rs 347.3 crore last fiscal. However, strong aluminium sales have boosted revenues by 15 per cent on a year-on-year basis. Net sales and operating revenues went up at Rs 2,873.7 crore against Rs 2,490.1 in the year-ago period.

For the nine-month ended December, net profit increased by a marginal 2 per cent.

Hindalco’s aluminium business grew 16 per cent at Rs 1,564.4 crore. Sustained strength in LME (London Metal Exchange) prices, increasing volumes and higher weight on value-added products are the key factors contributing to the growth, the company said. As a result, the segment profit increased 17 per cent to Rs 542.1 crore from Rs 462.9 crore.

Aluminium production rose 3 per cent from 301,794 tonnes to 310,838 tonnes.

Riding on the back of firm LME prices, revenues from copper business rose 14 per cent to Rs 1,308.4 crore from Rs 1,145.4 crore last year. However, the copper business suffered significantly when it had to bear the repair cost of two of its bigger smelters. Production increased across all product segments on the back of high capacity utilisation levels.

The company’s brownfield expansions of alumina refinery and smelter at Muri and Hirakud, respectively, are at an advanced stage, Hindalco said.

The company expects the global aluminium consumption to grow 4.5-5 per cent in 2006. Hindalco expects the North American demand growth to be sustained by heavy truck and trailer production, aerospace, military, railcar and beverage can segments.