JSWELs 3QFY17 continues to highlight the tough times faced by it led by increasing coal prices and falling power demand and merchant prices. JSWEL reported PAT of Rs 214mn (-93% YoY) in line with our estimates. Vijaynagar plant PLF continues to be subdued (53% in 3QFY17 vs. 96% in 3QFY16). JSWEL has started supplying power under new short term PPA (650MW with Karnataka), however increase in imported coal prices continues to exacerbate the problem for JSWEL.