It usually does in a stock nonnitrous engine because lower peak cylinder pressure slows the burning. If the timing is retarded in a non-nitrous engine, the exhaust opens before the fuel mix is finished burning and exhaust temperatures go up. Piston temperatures usually go down and exhaust valve temperature goes up. In the nitrous engine, exhaust temperature goes up for several reasons. The first is that the power output has gone up considerably.
More power usually produces more waste heat.
Second, the need to keep maximum cylinder pressures within reason has dictated that the biggest part of the fire happens closer to the exhaust valve opening time. There just isn t enough piston travel to extract all the energy out of the charge before the exhaust valve opens. Now, we could and sometimes do, open the exhaust valve later so more combustion pressure energy can be used to turn the crank. The trade off is negative torque on the exhaust stroke. If we still have significant cylinder pressure in the cylinder as the piston moves from BDC to TDC on the exhaust stroke, your net Hp falls drastically.