Thermon Group Holdings, Inc. (THR) has reported an 1.47 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $3.25 million, or $0.10 a share in the quarter, compared with $3.20 million, or $0.10 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.25 million, or $0.10 a share compared with $6.46 million or $0.20 a share, a year ago.

Revenue during the quarter dropped 6.58 percent to $67.58 million from $72.34 million in the previous year period. Gross margin for the quarter contracted 253 basis points over the previous year period to 41.84 percent. Total expenses were 92.19 percent of quarterly revenues, down from 92.34 percent for the same period last year. This has led to an improvement of 15 basis points in operating margin to 7.81 percent.

Operating income for the quarter was $5.28 million, compared with $5.54 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $10.40 million compared with $14.44 million in the prior year period. At the same time, adjusted EBITDA margin contracted 456 basis points in the quarter to 15.39 percent from 19.95 percent in the last year period.

"We are encouraged by the efforts of our entire organization to execute our customer deliveries in Q4 2017 and meet our revenue objectives. Due to a lower mix of our core electrical heat tracing product sales and higher labor content in the cost of our Greenfield sales, gross margins remained below our historical average which negatively affected our bottom line results. While our backlog remains strong, we continue to be subject to potential schedule delays by our customers. Given the mixed signals from the industry, we anticipate that organic revenue will be flat to low signal digit decrease for fiscal 2018," said Bruce Thames, Thermon's president and chief executive officer.