Mahindra and Mahindra on Friday posted an estimate-beating 98% jump in first-quarter profit, boosted by strong sales of its pricier sport-utility vehicles (SUVs).

The results for Mahindra – India's second-largest SUV maker by volume – were in line with rivals Maruti Suzuki and Tata Motors, which also posted higher-than-expected profits on the back of strong SUV sales.

Indian carmakers, including Mahindra, have raised the average selling price of cars since April, over emission norms that make production costlier, analysts have said.

Sales of utility vehicles (UVs) have also outpaced overall passenger vehicle (PV) sales growth so far this year.

UVs generally cost two to three times more than compact cars or sedans. Their sales grew around 18% in the quarter to June, compared to a 9.4% rise in sales of PVs.

Mahindra said it produced 100,162 SUVs in the April-June period, but could have seen around 5,000 more units produced if not for chip constraints and a disruption in engine-related parts.

The maker of Scorpio, Thar and XUV ranges of SUVs posted a standalone profit after tax of 27.74 billion rupees ($335.1 million) in the quarter ended June 30, beating analysts' estimate of 18.86 billion rupees as per Refinitiv data.

The company, which on Thursday raised $145 million from Temasek for its electric vehicles arm at a valuation of $9.8 billion, said its plans to launch a new range of electric SUVs were on track.

Mahindra also said it does not expect to invest more in RBL Bank unless "we see compelling strategic value at some point in the future".

Shares of the company had tanked nearly 7% last month, after the conglomerate's stake purchase in the private lender raised concerns about the rationale of its capital allocation strategy.

($1 = 82.7810 Indian rupees) (Reporting by Nandan Mandayam in Bengaluru; editing by Eileen Soreng and Varun H K)