Power arm of JSW Group, JSW Energy has reported a loss of Rs 109 crore in the second quarter of the financial year mainly due to losses in the foreign exchange markets.

The company's had reported a profit of Rs184.5 crore in the July-September quarter of 2010. It suffered because of a fall in prices of power sold in short-term market as well as foreign currency losses on overseas liabilities.

"Due to the euro zone crisis, the rupee appreciated almost 10% in the last quarter. This has resulted in a foreign exchange loss of Rs78.8 crore," said Lalit Kumar Gupta, joint managing director and CEO of JSW Energy.

The net sales of the company recorded an increase to Rs 965.5 crore in the quarter from Rs 774.6 crore in the same period previous year. JSW Energy uses imported fuel for more than 80 per cent of its requirement and thus is affected deeply by currency fluctuations as it has to makes payments to its international partners.

JSW Energy is planning to refinance about Rs 2,000 crore of debt by the end of this financial year and hopes to return to profits as its expects the coal prices to fall and tariffs rise in the country.