Thermon Group Holdings, Inc. (THR) has reported a 36.82 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $5.36 million, or $0.16 a share in the quarter, compared with $8.48 million, or $0.26 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $5.18 million, or $0.16 a share compared with $8.13 million or $0.25 a share, a year ago.

Revenue during the quarter dropped 13.55 percent to $64.34 million from $74.43 million in the previous year period. Gross margin for the quarter contracted 272 basis points over the previous year period to 44.48 percent. Total expenses were 88.66 percent of quarterly revenues, up from 84.11 percent for the same period last year. That has resulted in a contraction of 455 basis points in operating margin to 11.34 percent.

Operating income for the quarter was $7.30 million, compared with $11.83 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $12.58 million compared with $18.26 million in the prior year period. At the same time, adjusted EBITDA margin contracted 498 basis points in the quarter to 19.55 percent from 24.53 percent in the last year period.

"Our business continues to experience the effects of reduced activity related to commodity prices, especially in North America. However, we are encouraged by this quarter's order and backlog growth. We also saw revenue growth in EMEA (Europe, Middle East and Africa) and are optimistic about trends in key geographies within that region. Gross margins remained below our historical average due to competitive pressures within our Greenfield sales. However, our gross margins during Q3 2017 improved relative to the first half of the fiscal year," said Bruce Thames, Thermon's president and chief executive officer.

For the fiscal year 2017, Thermon Group Holdings, Inc.  expects revenue to decline by 7 percent.