Thermon Group Holdings, Inc. (THR) has reported a 49.16 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $3.51 million, or $0.11 a share in the quarter, compared with $6.90 million, or $0.21 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.13 million, or $0.10 a share compared with $8.48 million or $0.26 a share, a year ago.

Revenue during the quarter went down marginally by 1.60 percent to $68.81 million from $69.93 million in the previous year period. Gross margin for the quarter contracted 566 basis points over the previous year period to 42.03 percent. Total expenses were 91.75 percent of quarterly revenues, up from 83.81 percent for the same period last year. That has resulted in a contraction of 794 basis points in operating margin to 8.25 percent.

Operating income for the quarter was $5.68 million, compared with $11.32 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $10.69 million compared with $18.38 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1075 basis points in the quarter to 15.53 percent from 26.28 percent in the last year period.

"We are encouraged that our revenue levels this quarter remained comparable to last year in view of the current economic environment. Our gross margin performance for the second quarter was an improvement over Q1 2017; however, it remained below our historical average due to unfavorable product mix and pricing pressures. We anticipate gross margins to modestly improve in Q3 as we enter the heating season, but may fall short of our historical 45% due to a warm start to the winter and weaker capital and maintenance spending," said Bruce Thames, president and chief executive officer.